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

The Minimum Excise Duty (MED) supports public health objectives by ensuring that the cheapest cigarettes on the market are priced at a particular minimum level, which reflects their underlying health risks.

The MED was increased in Budget 2019, Budget 2020 and Budget 2021, alongside VAT inclusive 50 cent increases on 20 pack cigarettes in the most popular price category (MPPC). The MED is currently set at €452.52 per 1,000, which equates to a total excise duty amount of €9.05 per 20 pack. This equates to a retail price ‘trigger point’ of €11.50 per 20 pack once the MED is applied (i.e. a 20 pack costing less than €11.50 would be taxed as if it were priced at €11.50).

The increase in the MED since 2018 has been significant and recent Budget increases in the MPPC have ensured that the lowest priced cigarettes currently on the market are priced at €13.30.

Ireland is committed to a policy of high taxation of tobacco in order to encourage people to quit smoking, particularly younger people and this policy is working. In 2007, 29% of the population were daily smokers. By contrast, the Healthy Ireland survey figures for 2022 show that that figure has fallen to 14%.

In relation to proposals to change the minimum excise duty trigger price, the Deputy will be aware that it is a long-standing practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of a Budget decision.