The Vintners’ Federation of Ireland (VFI) has called on Government to introduce a new On‑Trade Sustainability Scheme in Budget 2027 – a targeted tax credit on draught products sold in pubs – to help protect Ireland’s pub network and the jobs and communities it supports.
Announced at the VFI AGM, the proposal is designed to support pubs that play a vital social role in towns and villages across the country, particularly in rural areas where the local pub is often one of the last remaining community hubs.
A new, targeted tax credit for pubs
Under the VFI proposal, pubs would receive a tax credit of €20 for every 50L keg of draught beer and cider, based on verified purchases from the previous year, capped at €20,000 per pub per year.
The credit could be used to reduce tax bills (for example VAT, income tax or capital gains tax) or, where a pub does not have sufficient tax liability, claimed as a cash payment. The scheme would be open to all licensed pubs, whether or not they serve food, and would apply to both companies and sole traders.
The approach mirrors existing tax-credit models already used by the State to support sectors such as film and television production, gaming and reality TV – but focused specifically on the on‑trade.
Why VFI says this is needed
Pubs continue to face severe cost pressures, including sharp increases in energy, wage and other operating costs, at a time when many rural and smaller pubs do not benefit from supports like the reduced VAT rate on food. The VFI warns that these pressures are driving an accelerating rate of pub closures, with serious consequences for local employment, tourism and community life.
The Federation argues that pubs are more than just businesses: they are important social spaces, offering connection, conversation and a sense of belonging, particularly for people at risk of isolation in rural communities. The proposed On‑Trade Sustainability Scheme is designed to protect that wider social value by targeting support at the core of the pub business – draught sales.
VFI Chief Executive Pat Crotty said:
“A pub is more than just a business – it is a social anchor and a vital part of the life of our towns and villages. If Government can use tax credits to support sectors like film and TV or gaming, then it must now use the same tools to protect Ireland’s pubs through a dedicated On‑Trade Sustainability Scheme in Budget 2027.”
Next steps
In the run‑up to Budget 2027, VFI will be engaging with Government, Oireachtas members and other stakeholders to build support for the On‑Trade Sustainability Scheme and to highlight the role pubs play in sustaining local economies and communities.
Members of the public who value their local pub are encouraged to follow the campaign on VFI’s social media channels and through ongoing media coverage, and to raise the issue with their local representatives.
