The price of a packet of 20 cigarettes, as the most popular price category, will increase to around €8.35. The price of cigarettes in the State will continue to be the highest in the EU, for example, some €2 per packet dearer than in the UK and more than twice the average price of the EU as a whole. The overall tax take from a packet of cigarettes following this increase will be €6.67, which is just under 80% of the retail price. The excise duty component is €5.19, which is 2.5 times the average excise duty of €2.07 for the EU as a whole as at 1 January this year. The high price of cigarettes in Ireland reflects the action taken over the years to ensure taxation policy plays a central part in the Government's strategy to protect public health by discouraging smoking. Given the high levels of taxation and prices compared to other countries, a larger increase in excise duty would not have been appropriate at this stage. Account has been also taken of the fact that it could make Ireland a more attractive location for cigarette smuggling.

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