Budget 2021: Smokers face another increase but e-cigarettes untouched
Finance Minister Paschal Donohoe has announced a further increase in the price of a packet of cigarettes.
From midnight, a packet of 20 cigarettes increases by 50cents with pro-rata increases on other tobacco products.
It brings the costs of cigarettes to at least €14 for the most popular cigarettes.
The Irish Heart Foundation has welcomed the increase but warned more must be done to put tobacco and e-cigarettes out of the purchasing reach of young people.
The charity had called for the phased introduction of a €20 charge for a packet of cigarettes by 2025 and a new excise tax of 6c per millilitre of e-cigarette liquid to prevent youngsters becoming addicted to nicotine.
“The 50c increase on a packet of cigarettes, and pro-rata on other tobacco products, is welcome but much more needs to be done. We are disappointed that there is no taxation on e-cigarette liquid,” said Irish Heart Foundation head of advocacy, Chris Macey.
“The smoking rate among 15-16-year-olds has been cut from 41% to 12% over a 20-year period.
“We cannot give up these hard-won health gains by allowing a new generation of children to become addicted to nicotine through an e-cigarette industry that is largely controlled by big tobacco.
“During the Covid pandemic, when our respiratory and cardiovascular health is paramount, it is disappointing that the Government failed to do more in the drive to achieve a Tobacco-Free Ireland.”
John Mallon, a spokesman for the smokers' group Forest Ireland, said: "This is yet another kick in the teeth for consumers who already pay punitive levels of tax on tobacco.
"It will drive even more smokers to buy tobacco from the black market or abroad, and who would blame them?
"Apart from the less well off, the biggest losers will be legitimate retailers, many of whom can ill afford a further loss of revenue."
Retailers Against Smuggling (RAS) has expressed grave concern that yet another excise increase will lead to further increased rates of tobacco smuggling directly impacting legitimate registered retailers.
Commenting National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It is very disappointing to see honest retailers take yet another blow with today’s excise increase which will inevitably make it even harder to compete with a growing black market.
"We have some of the highest rates of duty on tobacco products in the EU and it is no wonder that Ireland continues to be a target for tobacco smugglers, even while there are Covid-19 restrictions on travel in place.”
In Revenue’s 2019 Annual Report, its Illegal Tobacco Products Research Surveys revealed that 15% of cigarette packs held by smokers surveyed were classified as illegal.