Below cost selling fuels home consumption

New Central Statistics Office (CSO) figures reveal Irish people are spending more on alcohol for consumption at home. The CSO Household Budget Survey reveals the proportion of total alcohol expenditure spent on drinks consumed at home increased from over 41% in 2009-2010 to over 51% in 2015-2016.

The 10% increase in home consumption can be attributed to supermarkets selling alcohol below cost.

Since the abolition of the Restrictive Practices (Groceries) Order in 2006, alcohol in Ireland can be sold below cost and a retailer can then recover the VAT on the difference between the sale price and the cost price.

The CSO stated that spending on alcoholic drink and tobacco experienced the biggest drop in the half-decade to 2015-2016 (29.1 per cent) as households spent an average of €28 per week on both products.


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