(1) THAT for the purposes of the tax charged by virtue of section 72 of the Finance Act 2005 (No. 5 of 2005), that Act be amended, with effect as on and from 9 October 2019, by substituting the following for Schedule 2 to that Act (as amended by section 34 of the Finance Act 2018 (No. 30 of 2018)):
Rates of tobacco products tax
(With effect as on and from 9 October 2019)
Description of Product
Rate of Tax
Rate of tax at—
(a) except where paragraph (b) applies, €346.04 per thousand together with an amount equal to 8.91 per cent of the price at which the cigarettes are sold by retail, or
(b) €395.05 per thousand in respect of cigarettes sold by retail where the rate of tax would be less than that rate had the rate been calculated in accordance with paragraph (a).
Cigars .... .... .... …. …. …. …. ….
Rate of tax at €394.811 per kilogram.
Fine-cut tobacco for the rolling of cigarettes ....
Rate of tax at €379.831 per kilogram.
Other smoking tobacco .... …. …. …. ….
Rate of tax at €273.903 per kilogram.
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).
Financial Resolution No. 1 provides for excise duty increases on tobacco products, with effect from 12 midnight tonight. The increase amounts to 50 cent, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category, together with pro rata increases for other tobacco products. The price of a pack of 20 cigarettes in the most popular price category, assuming the full increase is passed through to the final retail price, will increase to €13.50. The excise duty component of the price will be €8.12 and the total tax, inclusive of VAT, will be €10.64, which represents 79% of the price of a pack. The pro rata increase on the price of a typical pouch of roll-your-own tobacco will increase by 70 cent to €17.70.
Ireland is committed to a policy of high taxation on tobacco to encourage people to quit smoking, particularly younger people. I am pleased to say this policy is working. In 2007, a total of 24% of our people were daily smokers. By contrast, the Healthy Ireland survey figures for June 2018 show that the figure has fallen to 18%. There are now more people in Ireland who have quit smoking than who smoke. Increasing tobacco product taxation is a key public health policy measure to continue the downward trend in smoking rates in Ireland and to help us achieve our goal of having a tobacco free Ireland by 2025. In respect of revenue raising, the increase in tobacco product tax and the minimum excise duty is estimated to contribute €57.1 million in a full year.