Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

149. To ask the Minister for Finance if he is aware that the Finance Act 1995 prevents retailers from setting a margin on the sale of tobacco, as they can on every other product, instead, they are obliged to sell product at the price set by the tobacco companies; and whether he has considered allowing a higher price be set even if he is unwilling to allow any discounting from the RRP. [20977/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Section 75 of the Finance Act 2005 (as amended) legislates for the ascertainment of retail prices of tobacco products, which had previously been dealt with in Section 84 of the Finance Act 1996.

The Tobacco Products Tax (TPT) provisions of Finance Act 2005 are subject to the Tobacco Products Tax Directive (2011/64/EU) on the structure and rates of excise duty applied to manufactured tobacco. The Directive states that manufacturers shall be free to determine the maximum retail selling price for each of their products. The maximum retail selling price is the basis for calculating the ad valorem (i.e. value based) portion of excise duty applying to cigarettes. Member States have no scope to alter the specific requirements set out in the Directive regarding the use of maximum retail selling prices in calculating the ad valorem portion of excise duty applying to cigarettes.

In line with EU legislation, Section 75 of Finance Act 2005 provides for the ad valorem portion of the TPT to be based on the retail price of the tobacco product. Section 75 also places an obligation on tobacco manufacturers and importers to make a declaration to Revenue detailing the maximum retail selling price for each tobacco product they manufacture or import. This information is required to ensure the ad valorem portion of the TPT is calculated correctly. Under Section 79 of the Finance Act 2005 it is an offence for a retailer to present cigarettes for sale for a higher price than that which has been declared to the Revenue Commissioners.