The flourishing microbreweries in the country would uplift the economy. While the critics are debating that these rebates are going to cut down the government revenue and would affect economy negatively. Even when these small industries are benefiting from the tax rebate of 50 percent, they still have paid about €3.4 million in excise duty to the Revenue Commissioners in 2014. Their estimated tax for year 2015 is about €5.4 million. Hence by supporting the industry it is government’s long term plan to improve the country’s economy further. The boom in this one industry will have cascading effect on other industries, too.Increase in the sector of micro-brewing will give rise to employment, thereby producing more revenue for the government. The wages paid by this industry creates rise in income tax and Pay Related Social Insurance (PRSI) payments to Exchequer. In 2015 it is said to have enabled around €2.6m of income tax and PRSI receipts for the Exchequer. This figure rises to €6.7million if induced and indirect tax and PRSI income is taken into account (Feeney, 2015, p. 16)As of today around two-thirds of the microbreweries are actively engaged in exporting their products, although the scale of these exports is very small.
In 2014 around 25 percent of their production was exported. These breweries are expecting to increase their export to about 50 percent of the total production in the coming years.The microbreweries are certainly a booming industry in Ireland. It has a diversified impact on the local economy, employment and tourism sector. The government’s initiative to relax the tax norms for these microbreweries is an acknowledgement of their contribution in the growth of the country’s economy. The microbreweries are an essential sub-sector of Irish agriculture food sector. The future looks very promising if these microbreweries are given right support and therefore the government is attempting to be lenient with them and let them flourish.Therefore it would be unfair to say that the current rebates and provisions given to these microbreweries by the government in Budget 2015 and 2016 is misguided rent-seeking. The production level of microbreweries coming up almost gets double in every two years. There are lots of start-ups coming with healthy growth rates. The latest Budget announcement to give tax relief upfront as well as through rebate would improve the cash position of these breweries. The increasing of ceiling to avail rebate has open opportunity of growth and maximum capacity utilisation for these microbreweries. Therefore, with the confidence government is showing in the micro-brewing industry, it would be correct to say that the future of these microbreweries is promising.