Financial Resolution No.1 provides for increases with effect from midnight tonight in the rates of alcohol products taxed across the full range of alcohol products. The increases when VAT is included amount to €1 on a standard bottle of wine, 10 cent a pint of beer, 10 cent on a pint of cider and 10 cent on a standard measure of spirits, with pro rata increases for other products. The expected yield from these increases is approximately €180 million in 2013 and a full year. The measures will increase the consumer price index by approximately 0.325%. Financial Resolution No. 2 provides for excise duty increases on tobacco products with effect from midnight tonight. The increase amounts to 10 cent, inclusive of VAT, on a pack of 20 cigarettes together with pro rata increases for other tobacco products. An additional 50 cent increase will apply to 25 g of roll-your-own, RYO, tobacco. The price of a pack of 20 cigarettes in the most popular price category will increase to €9.30. The excise duty component of this price will be €5.57 and the total tax, inclusive of VAT, will be €7.31. The increase on RYO amounts to an increase in total tax, inclusive of VAT, of approximately 60 cent per 25 g pack. The excise duty component of this increase will be 49 cent. The price and tax component of cigarettes in Ireland are among the highest in the EU. The high tax here reflects the long-standing commitment by successive governments to use taxation as an instrument to discourage smoking. While consumption of RYO tobacco is relatively small by comparison, there has been something of a movement towards this product in recent years. The additional increase in the tax on RYO will bring the tax on that product more in line with that on cigarettes. These latest increases will ensure that tobacco tax continues to play an important role in discouraging consumption of tobacco products. Unfortunately, high prices and taxes also make Ireland an attractive location for cigarette smugglers. The Revenue Commissioners, who have responsibility for tobacco products tax, are very conscious of the threat that this poses to legitimate business and to the Exchequer and they continue to make tackling the problem a priority. Revenue has achieved notable successes in seizing illegal products and in bringing people involved in this criminality before the courts. This important work will continue. This measure is estimated to yield €25 million in a full year.

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