Independent

Irish publican urges government to reduce tax cut on price of pint in Budget 2025

J.Smith2 hr ago
The father-of-three warned there will be a tsunami of closures unless Irish pubs get targeted support measures in the upcoming Budget on October 1st. Among the measures he would like to see in Budget 2025 is the reduction of 7.5% in Excise Duty, which would allow publicans to reduce prices and increase margins.

Cathal said: "The new rules are going to make some very good, profitable Irish pubs into loss makers in 18 months time."

Cathal and the Vintners Federation of Ireland are also urging for the hospitality VAT Rate to be cut to 9%, saying that for pubs serving food like his own, a reduced VAT rate is vital to maintaining affordability for customers. He is also asking for a reduction in employer's PRSI, a pause in the living wage and a reduction in the High VAT Rate from 23% to 21% to help reduce overall operational costs for publicans.

Some of the biggest challenges for Irish pubs are energy prices, increased staff costs, taxation, excise duty and insurance. He revealed: "The cost of doing business has soared, everything has gone through the roof. "What I'm buying beef, salmon, eggs or mayonnaise for has gone up by 100% in 18 months. "The cost of energy, water and insurance are all going up."

The Irish pub is still a key part of Ireland's social fabric but the culture in the country has changed drastically in the last 20 years. Cathal added: "For people living alone to be able to socialise with a cup of coffee or a Guinness 0.0 is crucial for people's wellbeing. "We're the only local establishment open from morning to late at night seven days a week. "The Irish pub is the last light left on in a lot of villages in Ireland and when that light goes out in other places, we're finding it's not being switched back on again."

The community is intertwined with his restaurant with events like communions, christenings, confirmations and weddings all taking place there. Cathal hopes that the next generation take on the baton of running a family business. The qualified chef has two sons and a daughter with his wife Helen. He said: "Succession is a huge thing, not everybody is willing to take over mum and dad's pub and work seven days a week like was done beforehand. "I'm lucky enough to have been born and bred a publican."

Cathal notes that food is more labour intensive than it was to serve just drinks in a bar. He employs seventeen people and points out that Irish pubs are an important source of jobs in rural areas. The business was established in 1827 but 17 years ago Cathal decided to diversify to a gastro pub which also offers accommodation. He said: "It's my own belief that people are looking for value for money every time they go out which is why the gastro pub has really taken off. "There are very few pubs in Ireland surviving on alcohol alone now."

Alcohol companies including Bulmers maker C&C and Guinness owner Diageo previously increased prices in an inflationary environment. Cathal would prefer it if the alcohol companies didn't raise prices again. The restaurant and pub is located on the famous N17 near Tuam and over 14,000 cars can pass through the picturesque village daily.

There is a warm and friendly atmosphere created in an Irish pub which Sheridan feels is unique. A Department of Finance spokeswoman told the Irish Independent: "The Department cannot comment in advance of the Budget, on any tax matters that might be the subject of Budget decisions."

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