Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Revenue tells us that an increase of 50 cent on a packet of cigarettes and similar increases on rolled tobacco, cigars and other smoking tobacco could lose €40 million or could bring in as much as €64 million. A range applies in this case. The Minister of State has decided again to go with the upper end of the range.

I have looked at figures from 2007. I know there was a change in the middle in the percentage on the retail price. Let us consider the rate of duty on tobacco products for 1,000 cigarettes. In 2007, the figure was €151. I have no wish to bombard the committee with figures. The corresponding figure went up to €288. During that period the amount of excise paid on cigarettes came down. Indeed, excise on cigarettes had been falling all during that period bar the past two years and, in the case of one of those two years, the change is explained because of plain packaging.

I am pointing out that the Government cannot go with the €64 million figure. It simply does not stack up. There is a point where people will stop smoking cigarettes, and that is important. This should be done for health promotion reasons and not to raise money. However, the Government has decided to go with the upper end of the Revenue's expectations. The Government did the same thing between 2015 and 2016. The actual increase in excise duty during that period was €16 million. In previous years, the figure dropped significantly. I hope that next year the figure will drop significantly as well, but the Government is banking on everyone staying smoking and buying the more expensive cigarettes, and that is not the case.