Sunday 27 March 2011

UK and Irish tax difference narrows

After the hike in excise duty in the UK's budget this week and the VAT rise earlier in the year (17.5% to 20%), how does Her Majesty's cut from a bottle of whiskey compare with the government's take in Ireland? These are the relevant numbers:

Ireland UK
Duty (per litre alcohol) €31.13 £25.52 (€29.05)
VAT 21% 20%

What's the base level of tax imposed by the state before the manufacturer, distributor and retailer set their prices? In Ireland, it's €10.55. In the UK, it's €9.76. Less than a euro in it now.