Budget 2018: LVA reaction


  • No change in excise is seen as a reasonable outcome by the Licensed Vintners Association (LVA)
  • The Association welcomes the retention of 9% VAT in the hospitality sector
  • However fears over Brexit, sterling devaluation and current high excise levels provide a strong case for a cut in excise next year


The Licensed Vintners Association (LVA), which represents Dublin publicans, has described the continuance of the current rate of alcohol excise and the maintenance of the 9% VAT rate for the hospitality sector in Budget 2018, as a reasonable outcome for the Trade, in the circumstances of the available fiscal space.


However, the LVA, which represents over 600 publicans, stresses the fact that the full effects of Brexit are already having a damaging impact on the Irish drinks and tourism sectors, as evidenced in the decline in UK tourists to Ireland and the increased threat of cross-border shopping.


Donall O’Keeffe, Chief Executive of the LVA commented: “It’s important to remember that Ireland already has one of the highest excise rates in Europe and with this and Brexit in mind we felt there was a strong case for a cut in excise rates on alcohol in this Budget. We will target an excise reduction in 2019, as part of the Support Your Local campaign.


“With pubs being one of the largest channels of foodservice for both domestic consumers and tourists alike, we very much welcome the continuation of the 9% VAT rate for the hospitality sector, which is pivotal in terms of maintaining our competitiveness and jobs. ” he continued.


“While it’s modest, we welcome the increase of €200 in Earned Income Tax Credit for the self-employed and we are calling on the Minister to continue the process of equalising this tax credit with PAYE workers in future budgets.”

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