The introduction of a draught rebate scheme is urgently needed in next month’s budget to save rural pubs most at risk of closure, according to vintners.
The Vintners’ Federation of Ireland (VFI) want the scheme, capped at €20,000 per pub, to return 40 per cent of excise duty on draught beer and cider at an annual cost of €73 million.
“Crucially, the majority of funds would flow directly to the smaller, traditional pubs that form the backbone of community life across rural Ireland,” it said, describing the measure as “a vital lifeline” for those pubs most at risk.
VFI chief executive Pat Crotty said: “If Government fails to act, Budget 2026 will be remembered as the year rural pubs were abandoned. The draught rebate is the difference between survival and closure for thousands of small pubs that keep communities alive.”
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Mr Crotty said the scheme was designed to help the pubs “that need it most”. Traditional drink-only pubs, which are excluded from the proposed call for a 9 per cent hospitality VAT rate for food service, are “battling soaring costs”, he said.
These costs stemmed from “Government-driven” payroll increases to insurance, energy and supply hikes, he added.
“Unless Government intervenes with the draught rebate, many of these small rural pubs will simply not survive,” he said. “We are talking about protecting businesses that are also community centres, employers and part of Ireland’s cultural fabric.”
What can we potentially look forward to in Budget 2026?
The VFI said a typical rural pub selling around 245 kegs a year would receive a rebate worth just over €4,700 annually, delivered through the VAT system.
“This is not a windfall but a modest support that helps offset wage and utility increases and sustain opening hours,” said Mr Crotty.
Alongside the rebate, the VFI is also calling for the reinstatement of the 9 per cent VAT rate for food services, to ease the burden on food-led pubs that have struggled since VAT went back to 13.5 per cent in 2023.
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“This is about fairness and survival,” Mr Crotty said. “The draught rebate is simple, capped and targeted. It will mean the difference between survival and closure for countless rural pubs.
“The closure of a rural pub is not just the loss of a business, it also represents a significant blow to local communities.”
