Noel Ahern (Dublin North West, Fianna Fail)
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Question 173: To ask the Minister for Finance the level of taxation on cigarettes; the various taxation increases over the past 15 years; if this revenue is ring-fenced for health spending; if some of the extra taxation in recent years was ring-fenced, for example the 50 pence levy in the mid 1990s; the health spending on illnesses specifically related to tobacco products; and if he will make a statement on the matter. [28733/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Based on cigarettes costing €8.35 per pack of 20, following the most recent increase of 25 cent from midnight on 7 April, 2009, the price includes a total of €6.67 in taxation (€5.19 excise duty and €1.48 VAT). The increases in excise, inclusive of VAT, made over the past 15 years are set out in the following table.

In accordance with section 3 of the Appropriation Act, 1999, the Revenue Commissioners made payments each year of certain excise duties on tobacco products as an appropriation-in-aid to the Department of Health and Children. These payments, which are spread over the year, amount to €167.605 million per annum.

It is not the normal practice of the Government to ring-fence individual tax receipts for particular purposes. The receipts from taxation are paid to the Exchequer and used to finance the general provisions of public services.

As the Deputy may be aware smoking is the greatest single cause of preventable illness and premature death in Ireland, causing the deaths of over 6,500 people a year. The impact of smoking on costs in the health service in terms of treatment services for cancer, cardiovascular disease and respiratory diseases is significant. Between them, these diseases account for a very significant element of hospital admissions and hospital bed occupancy. Increases in Excise Duty, inclusive of VAT