Bertie Ahern (Dublin Central, Fianna Fail)

I move:

(1) THAT for the purposes of the tax charged by virtue of section 72 of the Finance Act 2005 (No. 5 of 2005), that Act is amended, with effect as on and from 6 December 2007, by substituting the following for Schedule 2 to that Act:

"SCHEDULE 2

".

(2) It is hereby declared that it is expedient in the public interest that this resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for excise duty increases on tobacco products with effect from midnight tonight. The increases amount to 30 cent, VAT inclusive, on a packet of 20 cigarettes, together with pro rata increases on other tobacco products. The increase will bring the price of a packet of 20 cigarettes in the most popular price category to €7.45. It will ensure that taxation policy continues to play a key part, along with the work of the Department of Health and Children and the Office of Tobacco Control, in discouraging smoking. It is among young smokers in particular that price sensitivities are greatest.

It is anticipated that the excise yield from tobacco products will be €1.228 billion in 2008. This represents an increase in yield of €54 million over the projected figure based on the existing excise rate, with increases in the VAT yield also. The increase is expected to reduce cigarette consumption next year by approximately 1%. I recommend the resolution to the House.

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