Government must lower late night taxes following inaction on legislation, says LVA

LVA calls for SEOs to be reduced to €100 per night. Currently late bars/ nightclubs must pay over €32k per year to serve two hours later three nights per week

The Licensed Vintners Association (LVA) has called on the government to lower their taxes on late-night venues in the upcoming Budget, following their inaction on the licensing reform and late-night trading legislationCurrently, late bars or nightclubs who wish to operate after regular trading hours must apply for a special exemption order (SEO) which involves a tax of €205 (plus legal costs) for every night they wish to operate for an additional two hours. For a late bar or nightclub which opens late three nights per week, that equates to an annual cost of approximately €32,000, with additional solicitor fees also being paid on top.

Such taxation measures were meant to be streamlined following the implementation of the government’s own Intoxicating Liquor Bill, which the government had originally signalled would be in place for summer 2024. Yet despite those commitments, the relevant legislation is yet to be published.

Delays to legislation

In light of these delays, the LVA has called on the government to lower the charge for venues seeking to remain open for those two additional hours to €100 per night.

“We don’t think the government is justified in taxing venues to remain open for an additional two hours at these levels, especially when they had previously committed to modernising the whole system of late night licences,” said Donall O’Keeffe, CEO of the LVA. “By now, we were meant to have an annual late bar permit system to replace the expensive, bureaucratic and out-of-date SEO regime, but as the government is dragging their feet on updating the licensing laws we don’t know when or if that will actually happen.

“In light of these delays, the government should immediately seek to provide some solace to late night bars and nightclubs by lowering the cost of special exemption orders from €205 to €100 per night. This will significantly reduce the cost pressures on late night venues at a time when the entire hospitality sector is struggling.

“We would also encourage the government to be clear about their intentions for the reform of the licensing laws. Minister McEntee was recently quoted as saying the government will be bringing forward the legislation in the “coming weeks”. Well, those weeks have been “coming” for most of this year now, so it would be helpful to the industry if they were clear about what they actually plan to do. It now seems certain that much-needed licensing reform cannot be delivered in the lifetime of this government which is a source of frustration and disappointment to everyone in the nighttime economy. The critical question now is if the licensing reforms have actually been shelved until after the General Election or indefinitely,”  O’Keeffe said.