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Is Joan Burton mad?

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    #122
    Farmer Pudsey
    Registered Users Posts: 6,326 ✭✭✭Farmer Pudsey


    goose2005 wrote: »
    How would it cost the exchequer? Are you talking about cheap booze? There's little or no below cost selling - after all, where would off-licences make their profit? And the people who buy a crate of cheap beer are unlikely to also buy some high-margin expensive items

    Since below cost selling was allowed the supermarkets have reduced the price of booze. Now the recession has caused part of this however at time the supermarkets do special offers. It hard to believe that this booze is not sold at below the cost of production.

    This competes with pubs and it is why pubs are under such pressure. there is a believe ( and I agree with it) that there is scope for the government to increase tax on off licence trade. A minimum pricing of a euro for long neck bottles, and over for alcho-pops might well bring the government more revenue. The supermarkets have pushed the price of these products down so much the government is losing on revenue on VAT and on the reduced licenced trade.


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    #123
    Fitz123
    Registered Users Posts: 166 ✭✭Fitz123


    Farmer Pudsey wrote: »
    Since below cost selling was allowed the supermarkets have reduced the price of booze. Now the recession has caused part of this however at time the supermarkets do special offers. It hard to believe that this booze is not sold at below the cost of production.

    This competes with pubs and it is why pubs are under such pressure. there is a believe ( and I agree with it) that there is scope for the government to increase tax on off licence trade. A minimum pricing of a euro for long neck bottles, and over for alcho-pops might well bring the government more revenue. The supermarkets have pushed the price of these products down so much the government is losing on revenue on VAT and on the reduced licenced trade.

    Would this not just result in more people looking to buy alcohol outside the state? Either way any losses to the exchequer here are likely to be minimal compared to the savings available from amending social welfare payments, specifically pensions.


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    #124
    flutered
    Registered Users Posts: 6,672 ✭✭✭flutered


    in my area the licenced trade seems to scourc most of their supplys from the supermarkets, the loss to the exchequer is now two fold, the below cost selling vat returns plus the state has no way of checking how much the pubs spend scourcing alcohol, before they were buying it direct from the suppliers, this meant they were in the net, also a few suppliers of kegs has sprung up.


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