John Browne (Wexford, Fianna Fail)
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309. To ask the Minister for Finance further to parliamentary Question No. 242 of 20 October 2015, if he is satisfied that in light of the decision of the European Union Commission in a legal case (details supplied), that the differential treatment between insured and non-insured approved retirement fund providers under the Ireland-United Kingdom double tax agreement A does not constitute state aid; and if he will make a statement on the matter. [37830/15]

Michael Noonan (Limerick City, Fine Gael)
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In answering Parliamentary Question No. 242 of 20 October 2015, I noted, in relation to the treatment of ARF's for Irish tax purposes, that subsection (2) of section 784A exempts income and chargeable gains arising in respect of assets held in an ARF from income tax and capital gains tax. In replying to the Deputy's question of 20 October, I also noted that the Irish tax treatment of exempting income and chargeable gains applies regardless of whether the ARF provider is an insurance company or a different type of provider.

The Deputy's question concerns the United Kingdom treatment, under the Ireland/UK Double Taxation Convention, of income and gains from UK property of an ARF. As stated in my reply to the previous Parliamentary Question, I am advised by the Revenue Commissioners that this UK treatment is a matter that is under consideration by her Majesty's Revenue and Customs and the Revenue Commissioners. The UK treatment for tax purposes of the income and gains concerned is primarily a matter for the United Kingdom. In these circumstances it would be inappropriate to comment on the possible relevance for such treatment of, as yet unpublished, EU Commission decisions.

Billy Kelleher (Cork North Central, Fianna Fail)
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310. To ask the Minister for Finance given recent budgetary changes on excise taxes on tobacco products, the minimum price that retailers can charge for a packet of 20 cigarettes and a packet of fine tobacco for the rolling of cigarettes; and if he will make a statement on the matter. [37845/15]

Michael Noonan (Limerick City, Fine Gael)
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EU Directive 2011/64/EU ('the Tobacco Products Tax Directive'), which harmonises the structures and definitions of tobacco products across EU Member States, provides that manufacturers and retailers are free to determine the retail selling price of tobacco products and Member States cannot impose minimum prices. The Directive does allow Member States to impose a minimum excise duty on tobacco products, which in practice puts a floor under retail prices and protects tax revenues.

The minimum excise duty in Ireland currently amounts to €6.15 on a pack of 20 cigarettes; VAT on this excise duty would amount to €1.41, giving a total of €7.56 before any account is made for the trade element in the price and consequential further excise and VAT.  The excise duty payable on a 25g pack of roll-your-own tobacco is €7.29; VAT on this excise duty would amount to €1.68, giving a total of €8.97 before any account is made for the trade element in the price and consequential further VAT.

Tobacco companies are obliged to declare to Revenue the maximum retail selling price of cigarettes. No such obligation applies in relation to other tobacco products. The Commissioners inform me that, at present, the lowest maximum price declared for cigarettes range from €8 to €8.50 for 20 cigarettes. Most cigarettes sold in Ireland retail at higher prices and the Budget 2016 tax increases had the effect of increasing the price of cigarettes in the most popular price category by 50 cent to €10.50 per pack of 20.

The high levels of tax have a key influence on the retail price of tobacco products and Ireland has among the highest prices and taxes in respect of  tobacco products in the EU. The high rates of tax prevailing here reflect the long-standing commitment by successive Governments to use tobacco taxation to raise the retail price of tobacco as an instrument to discourage smoking, particularly amongst younger people. The tax and pricing policy is having the desired affect and the Healthy Ireland survey carried out this year for the Department of Health indicates that the number of daily smokers has been reduced to 19% of the adult population.