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TAX AS PERCENTAGE OF RETAIL PRICE OF
SELECT PRODUCTS FOR IRISH CONSUMERS

 

28% of the price of an Irish house is Tax (see bottom of page)

November 2004: The Minister for Finance Brian Cowen T.D. has provided the following data on excise duties and other indirect taxes, in answer to Parliamentary Questions from Richard Bruton T.D.

Details of the proportion of tax in the average retail price of final products to consumers, are set out in the following table:

Incidence of Duty and VAT Price Excise Content VAT Content Total Tax Content Tax Exclusive Price Tax as a % of Price
  € € € € € %
Pint of Stout 3.55 0.47 0.62 1.09 2.46 30.6
Pint of Lager 3.93 0.47 0.68 1.15 2.78 29.3
Standard measure of Whiskey 3.34 0.56 0.58 1.14 2.20 34.1
Whiskey Bottle 23.97 10.99 4.16 15.15 8.82 63.2
Bottle of Table Wine 9.34 2.05 1.62 3.67 5.67 39.3
Litre of Unleaded Petrol 0.99 0.44 0.17 0.61 0.38 62.1
Litre of Auto Diesel 0.92 0.37 0.16 0.53 0.39 57.4
Kerosene (Home Heating) 1,000 Litres 485.9 31.74 57.79 89.53 396.32 18.4
Diesel (Home Heating) 1,000 Litres 475.7 47.36 56.58 103.94 371.76 21.9
Packet of 20 Cigarettes 6.25 3.81 1.08 4.90 1.35 78.4
Less than 1,401cc Between 1,401 and 1,900cc Greater than 1,900cc
Sample OMSP* 17,000 Sample OMSP 32,500 Sample OMSP 37,000
VTR 3,825 VTR^ 8,125 VTR 11,100
VAT 2,287 VAT 4,230 VAT 4,495
Total Tax 6,112 Total Tax 12,355 Total Tax 15,595
Total as % of Price 35.95% Total as % of Price 38.02% Total as % of Price 42.15%

*Open Market Selling Price ^Vehicle Registration Tax

The current excise rate structure for vehicle registration tax i.e. the VRT for vehicles and motorcycles is as follows:

Private Cars (Category A)  
Cars up to 1,400 ccs 22.5% of Open Market Selling Price (OMSP)
Cars 1,401 to 1,900 ccs 25% of OMSP
Cars 1,901 and over 30% of OMSP
Small Vans and some Jeeps (Category B) 13.3% of OMSP
Other Vehicles (Category C) €50
Motor Cycles (new) €2 per cc up to 350 ccs and €1 per cc thereafter
Motor Cycles (used) mitigation of VRT provided for by age

Receipts from excise duties, on a revenue net receipts basis, totalled €4,736 million in 2003. The different elements of this tax revenue are as follows:

 

€m

Beer 455.4
Spirits 305.0
Wine 167.8
Cider 60.4
Tobacco 1,157.2
Light Oils 853.8
Other Oils 842.6
LPG 5.1
VRT 819.4
Other Excise 69.2
Total 4,735.95

Special duties such as betting tax, liquor licence fees and firearm certificate fees, are  included in the “Other Excise” category. 

Breakdown of Price of Pint of Stout 1997-2003

Source: Irish Brewers Association

 

Europe Excise Duties &  Comparative Irish Taxation Receipts

 


HL-Hectolitre: 100 liters ECU-Euros

Source: Irish Brewers Association  

The Minister for Finance has said that the most recent price comparisons between the Republic and Northern Ireland that have been carried out by the Revenue Commissioners, relate to June 2004. These provide a snapshot of the average retail prices of the main excisable commodities observed in the Dublin and Newry areas on 29 June 2004. 

The tables following provide a breakdown of the prices and tax on these commodities on that date. With respect to vehicles that are subject to Vehicle Registration Tax (VRT), in the State, comparisons cannot be made with Northern Ireland as VRT is not imposed in that jurisdiction.

DRINK   Price € Diff Excise Duty Diff VAT  Diff Total Tax Diff Ex
-Tax  Price
Diff € Tax as % of Price
Beer                        
Budweiser (can) Irl 1.71 0.05 0.50 0.03 0.30 0.05 0.79 0.08 0.92 −0.02 46.4
5% alc — 50 cl N. Irl 1.66   0.47   0.25   0.72   0.94   43.2
Guinness (can) Irl 1.76 0.12 0.42 0.02 0.31 0.06 0.72 0.08 1.04 0.04 41.1
4.2% alc — 50 cl N. Irl 1.64   0.39   0.24   0.64   1.00   38.9
Miller (bottle) Irl 1.80 0.64 0.31 0.02 0.31 0.14 0.62 0.16 1.18 0.48 34.5
4.75 alc —33 cl N. Irl 1.16   0.29   0.17   0.46   0.70   39.9
Spirits                        
Whiskey Irl 24.28 3.91 10.99 2.82 4.21 1.18 15.20 4.00 9.08 −0.09 62.6
40% alc — 70 cl N. Irl 20.37   8.17   3.03   11.20   9.17   55.0
Vodka Irl 20.89 5.24 10.30 2.65 3.63 1.30 13.93 3.94 6.96 1.30 66.7
37.5% alc — 70 cl N. Irl 15.65   7.66   2.33   9.99   5.66   63.8
Wines                        
Jacob’s Creek Irl 8.95 0.76 2.05 0.22 1.55 0.33 3.60 0.55 5.35 0.21 40.2
<15% alc — 75 cl N. Irl 8.19   1.83   1.22   3.05   5.14   37.2
E + J Gallo Irl 7.95 0.51 2.05 0.22 1.38 0.27 3.43 0.49 4.52 0.02 43.1
<15% alc — 75 cl N. Irl 7.44   1.83   1.11   2.94   4.51   39.5
Sparkling Wine Irl 12.95 2.52 4.10 1.63 2.25 0.69 6.34 2.32 6.61 0.20 49.0
<15% alc _ 75 cl N. Irl 10.43   2.47   1.55   4.02   6.41   38.6

28% of the price of a house is Tax

The Minister for Finance Brian Cowen said in a reply to a parliamentary question that more than quarter of the price of a new house goes to the Government in the form of tax. Mr. Cowen told Paul McGrath, TD. that 28% of the price was accounted for by VAT and stamp duty.

"This means that for a €300,000 house, €84,000 of the price is tax," Mr McGrath said. "The share of total Exchequer finances deriving from the new home market has increased from 3% to 9% in the last seven years. This is totally irresponsible and morally wrong," Mr McGrath added.

Budget figures published on November 26, 2004, show that Government expects to collect over €2bn in stamp duty this year, most of it from house purchases, and is anticipating a 4.5% rise in stamp revenues next year.

Click for Tax on Income Data 2000-2004

Click for Current Irish Taxation Rates

Click for Tax as % of GDP in OECD Countries

 

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