The measures announced include an increase in the excise duty for tobacco products, confirmation that 50 percent excise relief will be implemented for independent small producers of cider and pear cider and the halving of the cost of applying for a Special Exemption Order, which late night venues require in order to open. The current excise reductions for petrol, diesel and Marked Gas Oil are also being extended. Overall, there were no increases in fuel or alcohol duty.
Fuel excise
The current excise reductions of 21 cent per litre for petrol, 16 cent per litre for diesel and 5.4 cent per litre for Marked Gas Oil are being extended until 28 February 2023.
Tobacco excise
Excise duty on a pack of 20 cigarettes will increase by 50 cents, with a pro-rata increase on other tobacco products. According to the Budget 2023 Financial Resolutions, this change will take effect from midnight tonight and is in continued support of the Government’s public health policy to reduce smoking levels in Irish society.
Brewers
The revised EU Alcohol Directive permits the granting of up to 50 percent excise relief to independent small producers .
The Minister announced in his 2021 speech that implementation of the 50 percent excise relief for small producers of cider and pear cider (‘perry’) products would be contained in this year’s Finance Bill. It was confirmed in today’s Budget speech that this will proceed though no date for its implementation has yet been provided.
The qualifying production threshold for microbreweries is also being increased to allow the industry more scope to expand. The current production ceiling of 50,000 hectolitres will increase to 75,000 hectolitres.
Special Exemption Order application costs
As a support for the night time economy and in line with a commitment in the Programme for Government to modernise licensing laws, the cost of applying for a Special Exemption Order, which late night venues require in order to open, is to be halved. This will reduce the excise fees for a special exemption application order from €110 to €55. A Financial Resolution will be brought in tonight to enact this measure
According to the Minister’s speech, this aligns with a number measures taken to support the night time economy, and comes ahead of longer term reforms which will be announced when the General Scheme of the Sale of Alcohol Bill is published within weeks.