FDI Director Paul Kelly stated: “Almost 40% of our food and drink exports (€4.1bn) go to the UK. Our industry has already been severely impacted by exchange rate exposure, with the value of trade to the UK reduced by €570m in 2016. The continued weakening of Sterling will cause further reductions to the value of exports as well as job losses. Budget 2018 must support our efforts to maintain strong markets in the UK, as well as ensuring that food companies in the domestic market remain competitive against imports and the threat of cross-border shopping. To do this we need to keep business costs under control. At a time of such uncertainty, government also needs to avoid ill-considered public health measures such as soft drink taxes and proposals to introduce deposit return schemes for packaging. To support the wider food, beverage and hospitality sector, the 9% VAT rate needs to be maintained and alcohol excise reduced by 3.5%.”
The FDI Budget 2018 submission calls for:
Funding for Brexit mitigation, amounting to €600m over three years.
Changes to the EU State Aid Rules.
Increased funding for state agencies.
More trade support and market opportunity measures.
The 9% reduced VAT rate in hospitality to be maintained.
Reduce alcohol excise by 3.5%.
Existing VAT rates to be maintained.
No tax on soft drinks.
Proposals to introduce a deposit return scheme for packaging should be opposed.
- FDI 2018 Budget Submission.pdf - 480 Kbytes