Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I am pleased to move this financial resolution, which provides for excise duty increases on tobacco products with effect from midnight tonight. The increase amounts to 50 cent, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category together withpro rataincreases for other tobacco products as well as an additional 25 cent increase on a 30g pack of "roll your own" tobacco. The price of a pack of 20 cigarettes in the most popular price category, assuming the full increase is passed through to the final retail price, will increase to €12. The excise duty component of this price will be €7.27 and the total tax, inclusive of VAT, will be €9.51, which represents 79.3% of the price of a pack. Ireland is committed to a policy of high taxation of tobacco to encourage people to quit smoking, particularly younger people. The policy is working. In 2007, 24% of our people were daily smokers. By contrast, the HSE and Healthy Ireland survey figures for June of this year show that this figure has fallen to 17.6%. Furthermore, the quantity of cigarettes consumed per smoker has also fallen in that period.

Increasing taxation on tobacco products is a key public health policy measure which has been supported by successive Governments to continue this downward trend in smoking rates in Ireland and to help us achieve a tobacco-free Ireland by 2025. With regard to revenue raising, the increase in excise duty on tobacco products is estimated to contribute €63.8 million in a full year.

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