The Vintners’ Federation of Ireland (VFI ) is urging Government to introduce a Draught Rebate Scheme in next month’s Budget, describing it as a vital lifeline for rural pubs most at risk of closure.
The scheme, capped at €20,000 per pub, would return 40% of excise duty on draught beer and cider (up to 5% ABV ), 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.
VFI Chief Executive Pat Crotty said that 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.”
“This scheme is designed to help the pubs that need it most. Traditional drink-only pubs are excluded from the proposed 9% hospitality VAT rate and are battling soaring costs, from Government-driven payroll increases to insurance, energy and supply hikes.
“Unless Government intervenes with the Draught Rebate, many of these small rural pubs will simply not survive. We are talking about protecting businesses that are also community centres, employers and part of Ireland’s cultural fabric,” he said.
The Federation points out that 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,” says the VFI CEO.
Alongside the rebate, the VFI is also calling for the reinstatement of the 9% VAT rate for food services, to ease the burden on food-led pubs that have struggled since VAT was increased by 50% in 2023. Mr Crotty concludes:
“This is about fairness and survival. The Draught Rebate is simple, capped and targeted. It will mean the difference between survival and closure for countless rural pubs. Government must act decisively on Budget Day.”
Without urgent action, the VFI warns that Ireland risks losing hundreds of pubs that underpin social and economic life in towns and villages. The closure of a rural pub is not just the loss of a business, it also represents a significant blow to local communities.
