We need to cut VAT on non-alcoholic beers and wines to encourage more people to abstain from alcohol, according to a Fine Gael Senator.

Senator Garret Ahearn is warning that there is very little difference in price between alcoholic beers and non-alcoholic options – a situation that is very frustrating for people who are trying to drink less.

He is calling for a reduction in VAT on all non-alcoholic beers, wines and spirits to “take the pain out of Dry January”.

On Newstalk Breakfast this morning, Senator Ahearn said consumers are currently paying 23% VAT on non-alcoholic drinks – the same levy they are paying on alcoholic drinks.

He is calling for that to be reduced to the 13% they pay on conventional drinks like teas, coffees and juices.

“Over the Christmas period, a lot of people would have had non-alcoholic beers,” he said.

“They might have been designated drivers or in places like where I'm from in rural Ireland and Tipperary, people would have one or two drinks of non-alcoholic beers and they get very frustrated because the price is the exact same as it would be for a normal pint of Guinness or a normal pint of Heineken.”

Zero

Senator Ahearn said non-acholic beers have exploded in popularity in recent years but “nothing has been done” to reform the VAT system in line with the increase in non-alcoholic drinking.

“Obviously, people have changed the way they go out and the way they drink,” he said.

“People are certainly more conscious about being healthy, about doing the right things and the consumption of non-alcoholic beers has increased because of that.

“There's also a much wider range of non-alcoholic beers. Most well-known companies now produce non-alcoholic beers - whether it's beers, wines or gins even - and I just think that the Government has an opportunity here to lead in terms of reducing the cost to make it more attractive to drink non-alcoholic beers.”

"Right thing to do"

The Fine Gael Senator admitted the VAT reduction would impact on the Exchequer but insisted, “there's the right thing to do and there's not the right thing to do”.

“I think if we can make it more attractive for people to purchase a non-alcoholic drink, I think we should do that,” he said.

“I think there's also, you know, if you talk to pub owners, restaurants, they're also in favour of this because people are surprised that it's the exact same price for non-alcoholic and alcoholic and sometimes it's the restaurants and the pub owners themselves are the ones who have to explain why this is the case.

“I think both sides, whether you're the consumer or whether you're the publican, I think you'd welcome the fact that a non-alcoholic beer would be cheaper.”

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