Conor Sheehan (Limerick City, Labour)
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463. To ask the Minister for Finance the reason for the radical increase in the price of vaping liquid in Budget 2026; and if he will make a statement on the matter. [58237/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The E-Liquid Products Tax (EPT) was legislated for in Finance Act 2024 and will come into effect from 1 November 2025. Under the new law, the EPT will apply to both nicotine-containing and non-nicotine-containing e-liquid products at a single flat rate of 50 cent per millilitre of e-liquid.

The introduction of the EPT underlines Ireland’s ongoing commitment to safeguarding public health and tackling the increasing consumption of vapes and related products due to the health risks associated with their use, particularly for young people. There is a strong public health rationale to support the increased regulation of e-cigarettes and vapes, including through taxation.

The popularity of e-liquid products among young people is a primary public health concern, particularly due to the gateway effect these products can have in relation to the uptake of other nicotine or tobacco containing products. According to the Healthy Ireland Survey 2024, e-cigarette usage in Ireland is highest among younger people, with 17% of 15–24-year-olds reporting that they use them either daily or occasionally. The EPT will help to make these products less affordable and accessible for young people.

The EPT aligns with measures implemented across a number of EU Member States and proposed as part of the revision of the EU Tobacco Tax Directive (2011/64/EU). It also complements work being done by my colleague, the Minister for Health, to further regulate e-liquid products. Given the strong public health rationale underlying our tobacco tax policy, as well as the high e-cigarette prevalence rate in Ireland, a tax of 50 cent per millilitre of e-liquid is justified.

Peadar Tóibín (Meath West, Aontú)
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464. To ask the Minister for Finance his plans to amend the Finance Bill 2025 to reverse the increase in tax liability on pensions to Gardaí and members of the Defence Forces that is negatively affecting recruitment of senior Gardaí and members of the Defence Forces (details supplied). [58240/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I take it that the Deputy is referring to the Standard Fund Threshold (SFT). The SFT is a limit of €2 million on the total tax-relieved pension benefits a person can receive from Irish pension schemes. If a pension fund exceeds this limit, the excess amount is subject to a 40% chargeable excess tax.

The Deputy will be aware that in 2023, the then Minister for Finance announced an independent examination of the SFT. The examination, which was led by an independent expert, made several recommendations for reform across the SFT regime. Following consideration of the examination, Government agreed to implement changes to the SFT regime in a phased manner, with some changes legislated for in Finance Act 2024 and others to be considered in the future. Finance Act 2024 provided for phased increases to the SFT beginning in 2026 with the SFT reaching €2.8 million by 2029. From 2030 future increases will take account of increases in average earnings. The first initial increase to the SFT will take place for the year of assessment 2026, with the SFT increasing from its current level of €2 million to €2.2million.

No further changes are proposed in this year’s Finance Bill. However, an implementation group has been convened to consider the other recommendations in the examination. This group is chaired by the Department of Finance with representatives from Revenue, the Department of Justice, Home Affairs and Migration, the Department of Social Protection and the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. The group has commenced its consideration of the recommendations and is expected to report in Q2 2026. The work of the group will inform future consideration for changes to the SFT regime.

I would emphasise that the SFT, as with taxation generally, applies to both public and private sector pensions. Furthermore, appointments and recruitment to An Garda Síochána and the Defence Forces are matters for the Minister for Justice, Home Affairs and Migration and the Minister for Defence respectively.