Death and Taxes and Holidays

Salou looks like it was designed for the social media age – all wide boulevards, parrot-populated palm trees, mountainous horizons, historical buildings, and multicoloured, interactive fountains. Everywhere you look there are stunning foregrounds and backdrops for those Insta moments. Even as you walk along the coast to where Salou ends, there are platforms on the rocky outcrops for you to take those all-important selfies. 

My sixteen year old was delighted – every day we would go for a stroll for her to source content for her social channels, and we weren’t the only ones – everywhere there people waving their phones, filming, snapping and posting. But while Salou had a few wannabe influencers waving selfie sticks, the surrounds of La Sagrada Familia in Barcelona was like a particularly chilling episode of Black Mirror – it was like social media had become a virus, transforming people who should be awed by the staggering beauty of the building into witless goons who just want to use it as a backdrop. We even saw one couple standing in the middle of the road in the face of oncoming traffic in their attempt to get the perfect angle on their shot. 

Holidaying in Spain makes economic sense, as certain things are cheaper there than here; food, accomodation and medicine to name but three. This meant that I came home with 20 packs of Avamys sinus spray (11 euro over the counter there, thirty euro on prescription here) and some booze. Lots of booze, thanks to this gent on Twitter, who upon hearing I was going to Salou, informed me that the must-see spot in the area was not Gaudi’s beautiful architecture, or the stunning coastline, or even the colossal amusement park, but was in fact the local offie.  And lo, so it was that I found myself on more than one occasion in the Wine Palace Salou, enjoying their air conditioning and their remarkable selection of spirits, meats, beers and friendly staff. They have very few Irish whiskeys, but to give an idea of the prices they charge, they had the WCD ten year old for 19.99. Why can’t we have this in Ireland, we cry! I have no idea, but I am generally of the belief that you can never understand a country without working there – that is when you get to see what is and is not working, and most importantly, how your taxes are collected and how they are being spent. The average industrial wage is higher in Ireland than it is in Spain, so life here costs more than it does there. As for alcohol, it is taxed at a high rate in Ireland, as the Drinks Industry Group of Ireland recently pointed out, noting that 25 EU member states pay less excise tax on Irish whiskey than Ireland. 

A new Drinks Industry Group of Ireland report, Excise Tax Rates in Europe: How Ireland Compares in 2019, authored by Dublin City University economist Anthony Foley, shows that Ireland continues to have the second-highest overall excise tax on alcohol in the EU, the highest excise tax on wine, the second highest on beer, and the third highest on spirits.

Despite Ireland’s renown for the production of some of the world’s most popular drinks products, the Irish government levies a tax bill of €12 on a bottle of off-licence-bought Irish whiskey and 54 cents on a pint of Irish stout served at a pub, restaurant or hotel.

In terms of excise tax, Italian tourists pay four times less excise on a bottle of Irish whiskey in an Italian supermarket than they would if purchasing it for the Irish distillery that produced it.

In France and Germany, countries equally renowned for their drinks industries, excise tax rates on wine and beer are far lower. A shopper in France pays just three cents in excise on a bottle of Cabernet Sauvignon, while a patron at a German beerhall pays five cents in excise on every pint of lager.

It is a common theme – why come to Ireland to buy whiskey when it is cheaper back home? And therein lies a bigger question about Irish whiskey – why is it so expensive? Partly it is through strategy – it was framed as a premium product almost from day one, and those notions never went away. Smooth, triple distilled, luxuriant. But high taxation domestically ought to be of little concern to producers when the vast majority of it is being sold in export markets and thus beyond paddy taxman’s reach. Just look at the stampede into the sector – surely they aren’t all terrible accountants who grossly misread the Irish tax code? Clearly there is some profit to be made.  

Taxes on drink here are high and sales of drink are high, and even though those sales are falling, the cost to society and public health from abuse of alcohol has also been high. In fact, the WHO recommend high taxes as a way of negating the ill effects of abuse; alcohol deserves a high price because it deserves our respect. Neither should it be seen as a basic human right – perhaps we should reframe our thinking on it and see it, not as one of the central struts of Irish identity, but as a decadent, occasional pleasure. Personally, I cannot imagine my life without it, but I have to accept that no matter how I try to rebrand that, it is still a drug and I am still an addict. 

In Salou I bought two Spanish brandies, then when I came home I ordered another, and my general take on the products is that they are excellent – incredible liquid, exceptional value and a welcome counterpoint to my whisky obsession. Sometimes you just need to recalibrate those taste buds by diving into another spirit altogether. I still love whisky, but even your mouth needs a holiday from time to time. But the bottles I bought were not just Spanish brandies, they were Catalonioan – like any sophisticated pisshead, I like to imbibe some local gatts on my hollibobs.  If you want to know more about these brandies, there is an excellent piece here by Joe Micallef which goes into how they are made. Micallef is the chap who wrote of the Irish government’s ‘schizophrenic’ attitude to alcohol in Forbes, an article appeared to earn him some favour with the IWA parent group Drinks Ireland, who hosted him in Dublin a few months later

It’s worth pointing out that A) using the term ‘schizophrenic’ with such negative connotations, utterly unrelated to any discussion of mental health, is generally to be avoided, and B) governments have always struggled with the dilemma of massive tax gains from the sale of alcohol, and the enormous cost to public health, law and order and society at large from the abuse of it. All nation states struggle to balance this equation – Soggy Sweat’s If By Whiskey still captures the essence of the dichotomy, many decades after he spoke those words. 

So booze is cheaper in Catalonia. You know what else is cheaper? Human rights. The images from the marches in Barcelona do make for easy viewing; ludicrous jail sentences being handed down for sedition, AKA holding a referendum. It cuts to the bone our approach to ‘cheap’ hols and ‘cheap’ booze – a price is always paid somewhere, and not by us.

Ireland is a progressive, wealthy country. I am happy to live here and to pay taxes here. Certainly there are ways that those taxes could be collected in a fairer manner – don’t treat tiny producers the same as massive transnationals – and spent more wisely – infrastructure, modernisation, etc – but generally I am ok with taxes as long as we don’t see riot police baton-charging citizens. I paid more than thirty thousand euro in taxes last year, this year will be slightly less than that, and I am happy to do it. I’ve lived a life of almost relentless privilege, but when I needed State support, it was there for me. That said, The Wine Palace does ship to Ireland

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