I'm struggling to understand why we pay so much for alcohol here compared to other European countries. In Slovakia, a bottle of Tesco wine starts at just over a euro, even their own brands are cheap compared to same product here is much dearer.
Slovakia have a 20% vat rate, this is the Tesco link to the wine section in Slovakia.
not vat, its tax
Different countries raise and spend taxes in different ways. In Ireland we have a long history of collecting a high proportion of our revenue from alcohol taxes, certainly compared with our continental neighbours. They manage their tax bases differently. It's not surprising that wine costs more in a country where wine is an imported luxury vs. one where it's produced and is a traditional part of everyday life. Ireland's history of high tax on wine now allies with the public policy to make alcohol less available on health grounds, something that's only going to push prices up further.
There's also a low level of competition within the drinks trade, which means customers are used to the relatively high prices as normal. In other sectors of the market you might expect a disruptor to come in and start doing price competition but that doesn't seem to happen much with drinks, and the health policy makes it less likely.
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One of the main reasons why wine was taxed even over and above other types of alcohol is that we dont produce it. So there is no domestic lobby that will complain about increases / loss of jobs like domestic producers.
It was basically a protectionist tax on an imported 'luxury' back when wine was a niche product. That set a high bar which has only been added to.
The French are usually bolshie about this kinda thing but useless on this one.
"To follow knowledge like a sinking star..." (Tennyson's Ulysses)
There's excise duty of €3.19 on each bottle of wine, there's the problem.
It's getting so expensive to live here, we are paying through the nose for everything. This is Aldi wine section in Germany. Wine again starts at just over a euro a bottle.
We have 4% PRSI, it's 20% in Germany.
Different countries have different mixes of taxes.
Wine and alcohol is around the same price as it was 30 years ago in retail - and that's without taking inflation into account. Some things are getting more expensive but cheap alcohol isn't one of them. That's set to change with MUP coming in, though.
30 years ago a bottle of cheap plonk (Bulgarian Cab Sauv/ Cheap Spanish) was £5 (€6.35) - about the same price for a bottle of plonk now- and there is cheaper, currently available. So while it is fair to claim that wine here is expensive compared to other countries, it is actually way cheaper than it used to be, here - as are many things.
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You do know what V.A.T stands for?