Alex White (Dublin South, Labour) | Oireachtas source

This section of the Bill confirms the budget increases in the rates of tobacco products tax. When VAT is included, the increases amount to 10 cent on a packet of 20 cigarettes with pro rata increases on other tobacco products, with an additional 50 cent increase on a 25g pack of roll-your-own tobacco. As a result of the budget increases, the price of a packet of 20 cigarettes in the most popular price category has increased to €9.30. The excise duty component of this price is €5.57. The total tax, inclusive of VAT, is €7.31. In the case of roll-your-own tobacco the increase in total tax, inclusive of VAT, amounts to approximately 60 cent per 25g pack. The excise duty component of this increase is 49 cent. This measure is expected to raise €25 million in a full year.

I listened to what Deputy Pearse Doherty had to say about the black market. While he made some fair points, I do not think I was entirely in agreement with him when he said the increase was not about public health. I have to suggest, based on what I know from my day job as Minister of State at the Department of Health, that it cannot seriously be argued that price is not a relevant factor in one's decision to smoke cigarettes. While it might not be the only factor, as the Deputy outlined, it is certainly relevant. It cannot seriously be argued, therefore, that price issues have no bearing on public health.

Revenue has achieved considerable success in combating smuggling. In 2012 it seized 95.6 million cigarettes, with a retail value of €43 million. In the same year, it obtained 57 convictions relating to cigarette smuggling, with fines of €93,500 and 26 custodial sentences, of which seven were suspended, being imposed.

In addition, there were another 75 convictions relating to the sale or keeping for sale of un-stamped tobacco products, resulting in 21 custodial sentences and fines of €153,000.

The overall strategy being employed by Revenue to tackle the illicit trade is multifaceted and includes ongoing analysis of the nature and extent of the problem; developing and sharing intelligence on a national, EU and international basis; ongoing review of operational policies; development of analytics and detection technologies; optimum deployment of resources at point of importation and inland; intelligence-based operations and random checks at retail outlets, markets and private and commercial premises; and multi-agency operations, particularly in regard to large maritime importation and checks at markets. There is a good deal of activity being pursued by Revenue in this regard, which I am sure the Deputy will acknowledge.

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