Written answers
Tuesday, 17 May 2022
Department of Finance
Tobacco Control Measures
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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247. To ask the Minister for Finance the annual increases in the retail price of the most popular price category MPPC for a 20-pack of cigarettes since 2011; the portion of the increase related to taxes; the portion of the increase due to price rises by the tobacco industry in tabular form; and if he will make a statement on the matter. [24257/22]
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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248. To ask the Minister for Finance the estimated revenue that would be raised annually if tobacco taxation were to be increased annually on a pro-rata basis in order that all packs of 20 cigarettes cost at least €20 by 2025; the estimated revenue that would be raised annually if an equivalent annual tobacco tax on roll-your-own cigarettes was introduced; and if he will make a statement on the matter. [24258/22]
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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250. To ask the Minister for Finance the estimated revenue that would be raised annually if an excise tax of €0.06 per ml of electronic cigarette liquid was applied; and if he will make a statement on the matter. [24264/22]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 247, 248 and 250 together.
I am advised by Revenue that the table below shows the annual increases in the retail price of the most popular price category (MPPC) for a 20 pack of cigarettes since 2011, together with the portions related to tax increases and trade increases.
| MPPC | Tax | Trade | Total Increase | MPPC | |
|---|---|---|---|---|---|
| Year | at 1 January | Increase | Increase | at 31 December | |
| € | € | € | € | € | |
| 2011 | 8.55 | 0.25 | 0.10 | 0.35 | 8.90 |
| 2012 | 8.90 | 0.28 | 0.12 | 0.40 | 9.30 |
| 2013 | 9.30 | 0.10 | 0.10 | 0.20 | 9.50 |
| 2014 | 9.50 | 0.40 | 0.10 | 0.50 | 10.00 |
| 2015 | 10.00 | 0.50 | 0.00 | 0.50 | 10.50 |
| 2016 | 10.50 | 0.50 | 0.30 | 0.80 | 11.30 |
| 2017 | 11.30 | 0.50 | 0.20 | 0.70 | 12.00 |
| 2018 | 12.00 | 0.50 | 0.20 | 0.70 | 12.70 |
| 2019 | 12.70 | 0.50 | 0.30 | 0.80 | 13.50 |
| 2020 | 13.50 | 0.30* | 0.20 | 0.50 | 14.00 |
| 2021 | 14.00 | 0.70** | 0.30 | 1.00 | 15.00 |
| 2022 | 15.00 | 0.00 | 0.30 | 0.30 | 15.30*** |
*The tax increase in 2020 of €0.30 represents an increase of €0.50 in excise in October 2020 and a €0.20 reduction in VAT from 23% to 21% on 1 Sep 2020.**Includes the increase of €0.50 in excise in October 2021 and the increase of €0.20 in VAT to 23% on 1 March 2021.***The latest price for the MPPC at 11 May 2022.
I am advised that Revenue’s Ready Reckoner includes estimates for the yield from changes in duties on cigarettes on page 25. These estimates assume pro-rata increases in other tobacco products. The Ready Reckoner is available on the Revenue website.
The Ready Reckoner can be used to estimate the yield from increasing the tax on a pack of 20 cigarettes to €20 from the current MPPC, based on no behavioural change. The proportional yield arising from the application of an equivalent increase to roll-your-own cigarettes is also included in this publication. The timing of the yield would depend on the timing of the price changes chosen over the period to 2025.
Finally, I am advised by Revenue that tax return information does not include data on products that are not currently within the scope of Tobacco Products Tax or other Excise duties and taxes, such as electronic cigarette liquid. Therefore, there is no basis for Revenue to estimate the yield for the scenario set out by the Deputy.
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