Vol. 512 No. 4
132 Ms Shortall asked the Minister for Finance the way in which he has estimated that the increase in excise duty on cigarettes by 50p per packet will raise £132 million in a full year in view of the fact that the scale of the increase has been in part justified on the ground that it will result in reduced consumption; and if he will make a statement on the matter. [26397/99]
The estimated yield of £132 million has been calculated by the Revenue Commissioners, based on current consumption figures, projected consumption figures for the year 2000 and the effect the price increase will have on the projected consumption figures.
As the Taoiseach said in the House on budget night when moving the necessary Financial Resolution, the Government remains very concerned about the level of smoking, particularly the increase in smoking among the young. I am sure that the Deputy is well aware of the direct cost to the Exchequer because of the adverse health effects.
It is expected that the significant increase of 50p will reduce projected cigarette consumption below what it otherwise would have been in the year 2000, particularly among young smokers who may be more price sensitive than others.
