Cigarette Price Hike

Minister for Finance Simon Harris announced the price increases, stating that smoking continues to kill many Irish people every year and that the government needs to discourage and dissuade people, particularly younger people, from smoking.

The price of a packet of 20 cigarettes will now cost €20.15, with the tax take making up almost 80% of the retail price. Ireland has the most expensive cigarettes in Europe and the second highest in the world behind Australia.

Some TDs, including Danny Healy-Rae and Duncan Smith, questioned the rationale behind the price hike, arguing that it will hit older people who are addicted to cigarettes and drive them to the black market.

The Asthma Society welcomed the measures, but said taxation is only one part of the solution and that measures should be matched by sufficient investment in services to support people who want to quit.

Retailers Against Smuggling claimed that the €1 tobacco tax hike will drive customers away from local shops and into the black market, with over half of tobacco consumers already buying some or all of their tobacco outside Ireland.

Responsible Vaping Ireland said the 20c per millilitre increase in e-liquid products will add further pressure to businesses already facing spiralling operating costs and make it harder for legitimate retailers to compete with illegal sellers.

The government believes that the price increase will yield approximately €63.1 million in a full year and help reduce smoking rates, which have decreased from 29% in 2007 to 17% in 2025.

However, some TDs argue that the government's policy to cut smoking rates has been an abject failure, with the target of a 5% smoking rate by 2025 not being met.