Dublin: Ireland’s whiskey industry is calling for a 10% reduction in spirits excise duty in the country’s 2027 Budget, arguing that rising energy, shipping, water and operating costs are putting pressure on distillers despite strong export performance. The demand has been made by the Irish Whiskey Association (IWA) as the industry seeks measures to support distilleries, hospitality businesses and tourism operators.
The association has highlighted the strong performance of Irish whiskey in 2025, with global sales reaching a reported 16.4 million cases and exports valued at around €930 million. The industry group said the broader economic value associated with Irish whiskey exceeded €5 billion during the year, while the category also recorded increased market share.
At the same time, the Irish whiskey industry is seeking to reduce its dependence on the US market by developing new export destinations. According to the association, the US accounted for 49% of Irish whiskey exports in 2023, but its share declined to 38% in 2025. The industry is increasingly targeting markets including India, Japan, South Africa and Nigeria, although producers say expanding in these markets requires additional investment in staff, marketing, trade promotion and international exhibitions.
The IWA has called for stronger government support through Bord Bia, Ireland’s food and drink export agency, to help smaller distilleries establish a presence in emerging international markets. The association has also sought measures to ease energy and logistics costs and reduce regulatory pressures on small and medium-sized producers.
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Excise taxation remains a major concern for the sector. Recent research reported by RTÉ found that Ireland has the second-highest overall alcohol excise burden in Europe, while excise on spirits is among the highest in the EU and UK. A standard 70cl bottle of whiskey carries €11.92 in Irish excise compared with €2.69 in Spain and €3.65 in Germany.
The whiskey industry is also facing rising production costs. The association has warned of potential increases in energy expenses, international shipping charges and non-domestic water costs, which could further affect margins for distillers, particularly smaller and newer producers.
The request comes ahead of Ireland’s Budget 2027, scheduled for October 6, with the government currently planning an overall package of €8.5 billion, including €1.5 billion in tax reductions. Taoiseach Micheál Martin has said that a reduction in alcohol excise has not been ruled out, although no decision has been taken.
For the Irish whiskey industry, the proposed 10% excise reduction is therefore part of a broader package of measures aimed at maintaining competitiveness, supporting export diversification and protecting investment and employment as operating costs continue to rise.
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