Oireachtas Joint and Select Committees

Wednesday, 8 November 2023

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance (No. 2) Bill 2023: Committee Stage (Resumed)

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I am not opposed to this section. It involves a significant increase, and a bigger one than we have seen in recent years. I am just conscious of something I see in the community all the time. I do not know what a packet of cigarettes costs now - about €17, I think, with this increase. We are talking about €170 for a carton of ten packets. The number of people who are coming home from holidays with cartons that cost €40 is a major issue. We are part of the European Union, and people are allowed to do that. I am raising this issue in the context of public health, which is the motivation behind this tax increase. I am wondering if we have any data on this matter. People are coming back from their holidays with a carton or maybe two cartons of cigarettes in their duty free bags carrying a carton of cigarettes. The cartons might not be for them but for their next-door neighbour. This is common practice. It is extremely common to ask someone to bring back cigarettes. We hear about it happening all the time. Black market activity is another issue; I am talking about the legal part of it. There is a tipping point in this and Revenue always warned us about a tipping point. There is a point where the increase in the charge will actually be counterproductive in the context of public health. I do not know what that point is.

Has the Department carried out any research in conjunction with the Department of Health on what is happening in the market? Are there surveys of people who have purchased cigarettes? It is nearly counterproductive because, for a smoker, ten cartons of cigarettes will last a long time. I would just query what is happening. There is significant black market activity as well. I will leave it at that.

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