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Home > Dail Eireann debate. Written answers 202 & 203 - Excise duties yield [Tobacco] [31218/14, 31219/14].

[Oireachtas] Dail Eireann debate. Written answers 202 & 203 - Excise duties yield [Tobacco] [31218/14, 31219/14]. (15 Jul 2014)

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 202. Deputy Pearse Doherty asked the Minister for Finance to set out the partial and full year revenue that would be raised for the Exchequer by increasing the price of cigarettes by 10 cent and 20 cent respectively as well as proportionately across other tobaccos products. [31218/14]

Minister for Finance (Deputy Michael Noonan):  I am informed by the Revenue Commissioners that the estimated yield that could be raised in a full year and partial year (with effect from 15 October) from the proposed Excise increases mentioned by the Deputy are as set out in the following table.

-                                                  -                                                  Estimated Yield * €m

Partial Year                                  10 cent                                        2.0

                                                   20 cent                                       4.0

Full Year                                      10 cent                                        12.8

                                                   20 cent                                       25.4

   *Assuming no behavioural change by smokers.   

These estimates are based on the assumption of no exceptional change in behaviour by smokers following the increase in prices. This assumption may not hold where smokers substitute non-Irish duty paid consumption for duty paid consumption. For example, smokers might divert their consumption to tobacco products bought legally in another EU Member State or to illicit products.

 203. Deputy Pearse Doherty asked the Minister for Finance the partial and full year revenue that would be raised for the Exchequer by introducing a tax on e-cigarettes and liquid nicotine by 1 cent, 2 cent, 3 cent, 5 cent,10 cent,15 cent and 20 cent respectively. [31219/14]

Minister for Finance (Deputy Michael Noonan):  EU Tobacco Products Tax Directive (2011/64/EU) does not provide for e-cigarettes or nicotine refill containers and it is therefore not possible to apply an excise duty on these products.   

Until recently there was no regulation governing e-cigarettes or nicotine refill containers so taxing such products is problematic.   However, the new EU Tobacco Products Directive (2014/40/EU), inter alia, provides for the regulation of e-cigarettes. The European Council has now formally adopted the Directive, and it has been in force since 20th May 2014.  The Directive, among other things, sets mandatory safety and quality requirements e.g. nicotine content, ingredients and devices, as well as refill mechanisms etc., for e-cigarettes that do not fall under the definition of medicinal products as set out in Directive 2001/83/EC.  Member States have two years to transpose the new rules into national law.   

In the absence of domestic legislation to regulate these types of products, I do not wish to speculate how much revenue would be raised by imposing the levels of taxation proposed by the Deputy in his question.   

I would however point out to the Deputy that e-cigarettes and refill containers are currently subject to the standard VAT rate of 23%.

Item Type
Dail Debates
Publication Type
Drug Type
Tobacco / Nicotine
Intervention Type
15 July 2014

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