Financial Resolution No. 1 provides for excise duty increases on tobacco products, with effect from 12 midnight tonight. The increase amounts to 50 cent, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category, together with pro rata increases for other tobacco products. 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 €13.50. The excise duty component of the price will be €8.12 and the total tax, inclusive of VAT, will be €10.64, which represents 79% of the price of a pack. The pro rata increase on the price of a typical pouch of roll-your-own tobacco will increase by 70 cent to €17.70. Ireland is committed to a policy of high taxation on tobacco to encourage people to quit smoking, particularly younger people. I am pleased to say this policy is working. In 2007, a total of 24% of our people were daily smokers. By contrast, the Healthy Ireland survey figures for June 2018 show that the figure has fallen to 18%. There are now more people in Ireland who have quit smoking than who smoke. Increasing tobacco product taxation is a key public health policy measure to continue the downward trend in smoking rates in Ireland and to help us achieve our goal of having a tobacco free Ireland by 2025. In respect of revenue raising, the increase in tobacco product tax and the minimum excise duty is estimated to contribute €57.1 million in a full year.

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