Written answers
Thursday, 25 September 2014
Department of Finance
Tax Yield
Michael McGrath (Cork South Central, Fianna Fail)
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87. To ask the Minister for Finance if he will provide the yield that would be raised by increasing the price of cigarettes by 25 cent and 50 cent, respectively, as well as proportionately across other tobaccos products; and if he will make a statement on the matter. [36402/14]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that it is assumed the Deputy is referring to an increase in excise and VAT. The estimated yield that could be raised in a full year from the proposed increases is as set out in the table below.
| Increase (VAT inclusive) | Yield |
|---|---|
| 25 cent | €31.7m |
| 50 cent | €62.9m |
I am advised by the Commissioners that these estimates are based on the assumption of no exceptional change in behaviour by consumers following the increase in prices. This assumption may not hold where consumers substitute non-Irish duty paid consumption for duty paid consumption, or reduce their smoking levels.
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