Minister Paschal Donohoe has said he doesn't intend to reduce the cost of non-alcoholic beer through taxation, and that any attempts to do so would be 'difficult' to implement and provide 'considerable scope' for tax avoidance.
Image: Shutterstock/wavebreakmedia Image: Shutterstock/wavebreakmedia THE GOVERNMENT HAS no plans to introduce a lower VAT rate that would reduce the cost of non-alcoholic beer, despite Shane Ross’ desire to slash prices as part of his road safety campaign.
Transport Minister Shane Ross had told the Sunday Independent that he would try to put the pressure on Donohoe to examine ways of lowering the cost of alcohol-free beer. There have been a growing number of alcohol-free beer options on the market in recent years, with major players in the market like Heineken and Guinness offering non-alcoholic options, and retailers reporting growth in sales.
Non-alcoholic beer is not subject to excise duty which, on a regular pint of beer, is around 54 cent.On 5 February, Paschal Donohoe responded to a parliamentary question from Fianna Fáil TD Michael McGrath saying that were “no means under EU VAT law to apply a lower VAT rate to the supply of non-alcoholic beer”.“The position is that it is may be possible under Annex III of the VAT Directive for a reduced rate to be applied to non-alcoholic beverages,” he said.
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