Written answers

Tuesday, 30 September 2008

11:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 231: To ask the Minister for Finance the expected inflationary impact of increasing excise duty respectively by 10 cent per packet of 20 cigarettes, 10 cent per litre of petrol, 10 cent per pint of beer and 10 cent per bottle of wine; if he will increase excise duties in budget 2009; and if he will make a statement on the matter. [31991/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that, based on data currently available, the inflationary impact of increasing excise duty by 10 cent per packet of 20 cigarettes, 10 cent per litre of petrol, 10 cent per pint of beer and 10 cent per bottle of wine respectively would be a 0.426% increase in the Consumer Price Index. It is assumed that the Deputy is referring to a 10 cent (VAT inclusive) price increase. A breakdown of the individual estimated additional receipts and CPI effect is as follows:

Additional Total Revenue (Full Year) and CPI effect of Increases of 10c (VAT Inclusive)
RevenueC.P.I. Effect
â'¬m%
Cigarettes (per pack of 20)21.20.041
Unleaded petrol (per litre)209.60.245
Beer (per pint)79.20.128
Wine (per 75cl bottle)6.50.012
Additional Total Revenue (Full Year)316.5
Total CPI effect 0.426

The Deputy will be aware that it is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax or expenditure matters that might be the subject of Budget decisions.

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