Dáil debates

Tuesday, 7 October 2025

Financial Resolutions 2025 - Financial Resolution No. 1: Excise

 

7:55 am

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)

On Financial Resolution No. 1, it has got to the point where these increases in the cost of cigarettes are now just vindictive rather than serving any purpose. It certainly does not serve any health purpose. We know that for a number of years, there were substantial reductions in the number of smokers. That has begun to turn around despite the fact that over the past number of years, the price of cigarettes has increased by more than 34% until last year - I do not have the specific figure - taking these new figures into account.

The Government's actions, apart from being vindictive, are also counterproductive. They are enticing and encouraging a growing black-market economy. Therefore, when we look at what we should be doing to encourage people to quit smoking, there are better and more effective ways than taking this vindictive action against many people who desperately want to quit and who clearly are not being incentivised by the ever-increasing cost in a packet of cigarettes, but who need supports.

That is why last year, for example, I spoke against the Government's decision to increase the cost of vapes and impose a new tax on vapes because, again, it was using a sledgehammer to crack a nut. We want to remove access to vapes from young people, in particular. We want to ensure that people who have never smoked, for example, do not use vapes. However, we should also be supporting mechanisms that actually provide people who are quitting cigarettes with a less dangerous option.

It is notable that the only real impact on smokers, for example, from the Government's budget announced today will actually be an increase in their cost of living. There was nothing in today's budget for workers and families who are absolutely crippled by the cost of living and, of course, from midnight tonight, they will see a rise in the cost of driving to work or driving their families in places they need to be, which is essential for anybody who does not have access to public services. Once again, carbon tax means that petrol and diesel prices are going to rise again. Therefore, rather than support families and workers with the cost of living, today's budget is actually going to make people's lives harder. That is particularly prevalent in constituencies like my own.

I read through this exact debate from 12 months ago, from 1 October 2024, and I came across some very interesting comments:

The increase in carbon tax today further exasperates everyone who has to use a car to go to work, increasing costs for lorries and commercial vehicles and the transporting of food, essential goods and supplies, and the transporting of agricultural products. Passenger bus hire and taxis will also be impacted. The carbon tax is also pricing vehicles off the road.

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