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

The figure is 8.03%. It is worth noting that the structure of tobacco taxation was changed in the Finance Act 2012, which resulted in a higher specific component than had been the case and the introduction of a minimum excise rate. This was mainly to protect excise revenues in the event that the price of a pack of 20 cigarettes was reduced to below €7.75. If the approach suggested was adopted and the revised rates were applied to current retail prices, the tobacco products tax on a pack of 20 cigarettes in the most popular price category, currently priced at €9.30, would be €6.29 compared to €5.57 at present. The total tax take, inclusive of VAT, would be €8.03, compared to a total of €7.31 at present. I have explained the reason we have allowed a little tolerance, namely, that if there is an increase in price, the Exchequer also obtains a yield.