Dáil debates

Tuesday, 15 October 2013

Financial Resolutions 2014

No. 2: Tobacco Products Tax

8:05 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

The Revenue Commissioners have told the Department that if there is an additional investment in Revenue's human resources, it can identify €100 million of additional revenue. The net effect of that is something like €93 million. An investment of €6 million will bring in €100 million, according to the Revenue Commissioners.

The increase in excise duty is something for which Sinn Féin called, but not if the Government does not direct that revenue to dealing with the fact that one in three cigarettes is bought illegally in this State. The Government must increase the detection infrastructure at our ports. Failing that, the Government should ring fence the additional revenue and use it to deal with health issues. If one goes to Northern Ireland, one can buy nicotine patches very cheaply in places like Asda but in the Republic, they actually cost quite a lot. They are available on medical cards, which is to be welcomed, but for those without medical cards, they are quite expensive. We need to provide incentives for people to give up cigarettes and to assist them in their efforts.

I do not believe the Government has introduced this measure because of a desire to reduce the future health bills of the State or to target black market activity but simply as a snatch and grab exercise to increase the revenue of the State and to fill the hole that exists.

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