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Home > Dail Eireann debate. Written answer 191 - Tax yield [38177/14] [Tobacco].

[Oireachtas] Dail Eireann debate. Written answer 191 - Tax yield [38177/14] [Tobacco]. (07 Oct 2014)

URL: http://oireachtasdebates.oireachtas.ie/debates%20a...


Deputy Michael McGrath asked the Minister for Finance the yield from increasing the excise duty on tobacco by €1 per packet; and if he will make a statement on the matter. [38177/14] 

Minister for Finance (Deputy Michael Noonan): Increasing the price of a packet of cigarettes by €1, with a pro-rata increase on all other tobacco products, would yield €123.5 million in a full year, and €19.5 million from Budget night to the end of the current year. 

I would caution that this estimate assumes no exceptional change in consumer behaviour. Such a large increase could lead to consumers substituting from Irish duty paid tobacco products to non-Irish duty paid tobacco products, whether legally purchased in another jurisdiction or purchased illicitly, or indeed reducing their tobacco consumption.

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