Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Section 47 confirms the budget increases in the rates of tobacco products tax which, when VAT is included, amount to 10 cent on a packet of 20 cigarettes, with pro rata increases on other products, together with an additional 50 cent increase on a 25g pack of rolling tobacco. This is what the section does. I compliment the Irish Cancer Society on the work it does. Its advocacy has certainly added to the general good health of the nation and I admire its work very much. However, the restructuring it is seeking, as reflected in the amendment proposed by Deputies Ó Ríordáin and Twomey, was done last year when we undertook a significant restructuring. We left a little tolerance, as it were, between the specific rate and the ad valorem tax because eliminating ad valorem tax completely would result in a loss in revenue where there is a price increase as opposed to an increase in excise.

On the penalties for tobacco smuggling offences suggested by Deputy Mathews, the penalty on summary conviction for evasion of duty is €5,000 and a term of imprisonment not exceeding 12 months. However, if the Director of Public Prosecutions decides to opt for indictment, the maximum penalty increases to €126,970 and a term of imprisonment not exceeding five years. In circumstances where the value of the product concerned is greater than €250,000, a fine of up to three times the value of the product may be imposed. This means a court could impose a fine of up to €900,000 on a person who smuggled cigarettes to the value of €300,000. These penalties come very close to those requested by the Deputy.