Prices for ornamental horticulture and hot-air balloon rides
Horticultural products include flower bulbs, flowers, plants and nursery products such as Christmas trees. The reduced VAT rate of 9% on these products is being abolished. From 1 January 2028, the standard VAT rate of 21% will apply to horticultural products. From that date, the standard rate will also apply to hot-air balloon rides. As this sector operates on a prepayment basis, a transitional provision stipulates that the VAT rate applies from the moment the service is provided. So, if a hot-air balloon flight is paid for in advance in 2027 but takes place in 2028, the standard VAT rate will be payable.
Extension of the excise duty rebate on unleaded petrol
Excise duty rates for unleaded petrol, diesel and LPG have been reduced since 1 April 2022. As of 1 July 2023, the reduction was partially reversed. The Government proposes to extend the excise duty reduction for unleaded petrol until 1 January 2028. The excise duty rate for unleaded petrol will be increased slightly, but will not be index-linked, meaning that the excise duty reduction for 2027 will, in effect, be more substantial.
| Excise duty rate | 2027 | 2026 |
|---|---|---|
| In the base path | €1.02812 | €1.00207 |
| Excise duty reduction | €0.17643 | €0.15738 |
| Excise duty rate | €0.85169 | €0.84469 |
Indexation of alcohol duty
Unlike other excise duties, alcohol excise duty is not currently subject to any indexation mechanism. As a result, its rate decreases in real terms when inflation rises. It is proposed that the rate of excise duty be automatically adjusted annually in line with inflation, so that the real value of the rates remains constant.
Abolishing the small brewers’ scheme
Beer from small breweries is subject to a lower excise duty rate than beer from large breweries. Small breweries (< 200,000 hl) receive an excise duty reduction of 7.5%. Depending on the alcohol content, this amounts to a difference of one to two cents per glass. The government proposes to abolish this reduced excise duty rate from 2028, so that the standard excise duty rate will also apply to small breweries.