Appearing before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform (8 November), the National Off-Licence Association (NOffLA) called on Government not to increase excise duty and to introduce a ban on below cost selling.
 

Addressing the Committee, Chairperson of NOffLA, Evelyn Jones, stated, “An increase in excise duty is a luxury that the independent specialist off-licence sector simply cannot afford. Large multiple retailers on the other hand are more than capable of absorbing excise duty increases as they can engage in below cost selling practices.
“Taxes in Ireland are high enough and are currently amongst the highest in Europe. For example, we have the fourth highest excise level for beer and spirits, the highest level for sparkling wine, the third highest rate for wine and the second highest level for cider in the whole of Europe.
“Government would be better placed introducing a ban on below cost selling. Currently retailers can and do sell alcohol at below cost levels. The Exchequer loses out significantly because of this practice. If this practice was banned, it would ensure that retailers cannot reclaim 23% of the cost of the loss leader in their VAT return; saving the State an average of €21m each year”, said Jones.
 

NOffLA, which represents 315 independent community-based specialist off-licences across Ireland, has witnessed 75 business closures in the last four years. Based on the current rate of closures, NOffLA expects a further 25-30 businesses to cease trading in 2013.
According to Jones, “Something must be done to protect this specialist trade. If steps are not taken urgently, the independent off-licence sector will disappear entirely with a loss of
jobs and revenue to the State. Ensuring that excise duty is not increased and introducing a ban on below cost selling would go some way towards supporting the industry as well as increasing revenue to the state.”