Brian Cowen (Laois-Offaly, Fianna Fail)

——inclusive of VAT and by corresponding amounts on other tobacco products. This increase serves to underline the desire of us all to curtail the consumption of tobacco, particularly among young people where price sensitivities are greatest. It will raise €112 million in a full year.

I believe we should plan for further increases in tobacco excises for a period ahead so as to keep the level of tax increasing in real terms. I am discussing such a formula with the Minister for Health and Children. These steps are being taken as a health promotion measure and it would be helpful if in that spirit the social partners were to agree to discount some or all of the effect of such price increases in fixing on the relevant inflation benchmark.

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