Financial Resolution No. 3 provides for excise duty increases on tobacco products with effect from midnight tonight. The increase amounts to 75 cent, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category, together with pro rataincreases for other tobacco products. The price of a packet of 20 cigarettes in the most popular price category, assuming the full increase is passed through to the final retail price, will increase to €16.75. The excise duty component of this price will be €10.05 and the total tax, inclusive of VAT, will be €13.18, which represents 78.7% of the price of a packet of 20 cigarettes. The pro rataincrease on the price of a typical pouch of roll-your-own tobacco will increase by €1.04 to €24.74.

Ireland is committed to a policy of high taxation of tobacco in order to encourage people to quit smoking, particularly younger people. The policy is working. In 2007, 29% of our people were daily smokers. By contrast, Healthy Ireland survey figures for 2022 show that the figure has now fallen to 14%. Increasing tobacco products taxation is a key public health policy measure to continue this downward trend in smoking rates in Ireland and help us to achieve a tobacco-free Ireland post 2025. The increase in tobacco products tax is estimated to yield approximately €68 million to the Exchequer in a full year. I see this resolution as a key part of the Government's policy to encourage people to give up smoking or certainly to encourage them not to start. I will happily take any questions Members may have.

See this item in context