Pearse Doherty (Donegal, Sinn Fein)
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98. To ask the Minister for Finance the expected revenue from the implementation of a special tobacco levy at a rate of 25% that would be imposed on each tobacco company operating in the Irish market as a proportion of the profits they generate. [5184/16]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy is proposing to apply a tax on the profits of tobacco  companies.

In Ireland profits of companies are taxed through corporation tax. Ireland's corporate tax rate of 12.5% on trading income is akin to a brand and is an important part of the Government's strategy of creating an enterprise friendly environment to attract jobs and investment to Ireland. One of the main features of the rate is its simplicity and the fact that it applies to a broad base.

The Deputy's suggested approach would involve complexity and could undermine the attractiveness of Ireland's corporate tax offering.

It is not possible to predict the effect such a levy would have on the behaviour and decisions of companies within the State. This uncertainty in relation to responses prevents a reliable estimate being made of any yield that might accrue to the Exchequer if such a levy were imposed on their profits. The proposal could also give rise to State Aid implications.