Dáil debates

Tuesday, 10 October 2023

Financial Resolution No. 3: Tobacco Products Tax

 

9:50 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank everybody for taking part in the discussion. Smoking is still the leading cause of preventable death in Ireland. Approximately 4,500 people per year die because of preventable diseases caused by smoking. We have an obligation to use whatever policy and taxation tools we have to encourage young and not-so-young people away from smoking. One of those tools is to make purchasing cigarettes and tobacco more expensive, though it is not the only one.

We have introduced fairly significant legislation, the Public Health (Tobacco Products and Nicotine Inhaling Products) Bill 2023. That will, along with other legislation, make a significant difference in the restrictions on how companies can market product and where it is placed in shops.

There is also support through the HSE to help people get off an addiction. Deputies have rightly pointed to the fact this is an addiction for many people. Sending a clear signal that each year we are likely to make this product more expensive plays a part in ensuring many young people do not look at it as an option because it is too expensive. It also forces people to think about the affordability of, and, therefore, the alternatives to, continuing to smoke. It makes sense to continue to do this, while I recognise many of the points made.

The point on the illicit trade it is very genuine, particularly in the context of cross-Border trade. The 2022 Ipsos MRBI survey on illicit tobacco products, carried out on behalf of Revenue and the national tobacco control office, found that 17% of cigarette packets held by smokers surveyed were classified as illegal and 17% of pouches of roll-your-own tobacco were classified as illegal. The Revenue Commissioners are very conscious of the threat that tobacco smuggling and the illicit trade poses and continue to make tackling the problem a priority.

Last year, for example, Revenue seized 51.6 million cigarettes with a value of €39.5 million. As of 31 August this year, Revenue had seized approximately 45.3 million cigarettes with a value of just under €36 million. Revenue continues to work with An Garda Síochána on being more effective in ending that illicit trade. Clearly, the higher the price, the more attractive the market because of the bigger price differential between product sourced outside of Ireland and a legally purchased packet of cigarettes. We have to continue to examine that in the decisions we make on budget day.

We should be doing many of the things raised here, such as promoting sport and improving sport facilities. We are putting tens of millions of euro into sporting facilities over the next year or so through the sports capital programme. We need to do more of that. The core proposition, while this is a revenue-raising measure and €68 million will come in, is that this policy is a deterrent to smoking and purchasing cigarettes. For that reason, we should support it in this House.

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