Sky-high alcohol taxes threaten to put Irish pubs out of business

Monday, 24 August 2026 at 08:43

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For many tourists, sipping a pint of Guinness in a genuine Irish pub is as much a part of Ireland as rolling green hills and whiskey. But crushingly high taxes are making life tough for these iconic pubs. Ireland’s drinks industry is sounding the alarm, warning that more and more bars may be forced to shut their doors.

New research commissioned by the Drinks Industry Group of Ireland (DIGI) shows that Ireland has the second-highest alcohol excise duty in the European Union and the United Kingdom. Only Finland tops Ireland with an even higher tax.

For whiskey lovers, the tax is a real sore point. On a 70-centilitre bottle, the Irish government levies a hefty 11.92 euro in excise duty. In Spain it’s just 2.69 euro, and in Germany 3.65 euro.

More and more Irish pubs are disappearing

According to DIGI, those high taxes have become a serious problem for Ireland’s pub sector. On top of excise duties, pubs are also grappling with rising staff costs, energy prices, insurance, and other operating expenses.

As a result, pubs across Ireland are vanishing at a startling pace. One after another is closing due to soaring costs. Since 2005, more than 2,100 pubs have shut down.

That works out to roughly one in four. The impact is felt especially hard in rural areas. There, the local pub is far more than a place to order a whiskey- it’s a gathering spot at the heart of the community.

Ireland’s drinks sector calls for bold action

DIGI is urging the Irish government to cut alcohol excise duties by 10 percent in the upcoming budget.

The organization says there’s another strong reason to do so: people in Ireland are drinking significantly less. In 2025, the average Irish adult consumed 9.30 litres of pure alcohol, about 35.6 percent less than at the 2001 peak. That now puts Ireland around the European average.

Whether taxes will actually come down remains to be seen.

FAQ

How much tax is on a bottle of whiskey in Ireland?
On a 70 cl bottle of whiskey, Ireland levies 11.92 euro in alcohol excise duty—placing the country among those with the highest alcohol taxes in Europe.
How does Ireland’s whiskey tax compare with other European countries?
The gap is substantial. While Ireland charges 11.92 euro in excise on a 70-centilitre bottle of whiskey, figures show the duty is many times lower in several other European countries.
Why does the Irish drinks sector want to cut alcohol taxes?
According to the industry, high excise duties are piling extra pressure on pubs and other hospitality businesses.