DUBLIN, Ireland: A new report has found that people in Ireland pay far higher taxes on alcohol than most of their European neighbours. The research shows that Irish consumers pay 11 times more excise duty on beer than Germans and 80 times more excise on wine than the French.

Overall, Ireland has the second-highest excise duty on alcohol in the European Union and the UK, with only Finland charging more. By type of drink, Ireland ranks second highest for wine, and third highest for both beer and spirits.

For example:

• A pint of beer in Ireland carries an excise charge of 55 cents, compared with just 5 cents in Germany.
• A glass of wine in Ireland has 80 cents of excise, while in France it is only one cent. In fact, 15 EU countries apply no excise at all on wine.
• A bottle of whiskey in Ireland carries nearly 12 euros in excise duty, while in Spain the same product is taxed at just 2.69 euros — a difference of 9.23 euros, even though the whiskey is made in Ireland.

Excise duty is charged in addition to VAT. Together, these taxes mean the Government takes 27 to 29 percent of the price of every drink sold in a pub or restaurant. For alcohol sold in off-licences, the Government's share is even larger: 63 percent of a 27 euro bottle of whiskey and 48 percent of an 11 euro bottle of wine goes to tax.

DCU economist Anthony Foley carried out the study for the Drinks Industry Group of Ireland (DIGI). The group argues that such high taxes are difficult to justify because alcohol consumption in Ireland has fallen by more than a third (34.3 percent) since 2001, and is now at the EU average.

DIGI says the tax burden is putting heavy pressure on the drinks industry. More than 100 pubs are closing every year, and producers are already struggling with new U.S. tariffs on exports. The group is calling on the Government to cut excise duty by 10 percent in the next Budget to ease costs and help the sector compete fairly with other European countries.

Anthony Foley said the figures show that Ireland's alcohol taxes remain "very high" compared with the rest of Europe, placing an "especially heavy burden" on both consumers and the drinks industry.

DIGI secretary Donall O'Keeffe added that the level of tax is "hard to understand" now that Irish drinking rates are in line with the EU average. He warned that without changes, a further 600 to 1,000 pubs could shut in the next decade, adding to the 2,100 closures since 2005.

O'Keeffe also said other European governments recognise the importance of their national drinks industries by keeping excise low. "The French support their wine industry, and Germany does the same for beer. Ireland's pubs and drinks are world-famous too, but here they face punishing tax rates. With international trade pressures growing, the Government needs to rethink its approach."