Written answers
Tuesday, 21 March 2023
Department of Finance
Departmental Data
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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333. 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. [13488/23]
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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334. 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 so that all packs of 20 cigarettes cost at least €20 by 2025; and the estimated revenue that would be raised annually if an equivalent annual tobacco tax on roll-your-own cigarettes was introduced. [13489/23]
Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 333 and 334 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 | 0.50 | 0.30 | 0.80 | 15.80 |
| 2023 | 15.80 | 0.00 | 0.00 | 0.00 | 15.80*** |
| *The tax increase in 2020 of €0.30 aggregates an increase of €0.50 in excise in October 2020 and a €0.20 reduction in VAT from 23% to 21% on 1 September 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 14 March 2023 is €15.80. |
In relation to Question 13489/23, I am advised by Revenue that its Ready Reckoner for calculating the impact of potential changes in rates of taxation includes estimates for the full year yield from changes in duties on packs of 20 cigarettes and on roll-your-own tobacco on page 25. The Ready Reckoner is available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.
The Ready Reckoner estimates assume pro-rata increases in other tobacco products and also assume no behavioural change.
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