Wednesday, 2 July 2014

Questions (68, 69, 70)

Thomas P. Broughan

Question:

68. Deputy Thomas P. Broughan asked the Minister for Finance the additional yield that could be generated for the Exchequer from an additional ten, 20, 30, 40 and 50 cent increase in excise duty on a 75 cl bottle of wine. [28673/14]

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Thomas P. Broughan

Question:

69. Deputy Thomas P. Broughan asked the Minister for Finance the additional yield that could be generated for the Exchequer from an additional one, two, three, four, five and ten cent increase in excise duty on a pint of beer or cider, and a standard measure of spirits. [28674/14]

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Thomas P. Broughan

Question:

70. Deputy Thomas P. Broughan asked the Minister for Finance the additional yield that could be generated for the Exchequer from an additional one, two, three, four, five and ten cent increase in excise duty on a packet of cigarettes and a pro-rata increase on other tobacco products. [28675/14]

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Written answers (Question to Finance)

I propose to take Questions Nos. 68 to 70, inclusive, together.

I am informed by the Revenue Commissioners that the estimated yield that could be raised in a full year from the proposed excise increases mentioned by the Deputy are as set out in the table below.

I am advised by the Commissioners that these estimates are based on the assumption of no exceptional change in behaviour by consumers following the increase in prices.  This assumption may not hold where consumers either reduce their tobacco consumption or substitute non-Irish duty paid consumption for duty paid consumption. For example, in the case of the latter, consumers might divert their consumption to tobacco or alcohol bought legally in another EU Member State or to illicit product.  

Duty Increase

1c

2c

3c

4c

5c

10c

20c

30c

40c

50c

Potential Yield *

€m

€m

€m

€m

€m

€m

€m

€m

€m

€m

Beer

6.7

13.3

20.0

26.6

33.2

66.1

 

 

 

 

Spirits

3.3

6.6

9.8

13.0

16.2

31.8

 

 

 

 

Cider & Perry

0.9

1.8

2.7

3.6

4.5

9.0

 

 

 

 

Cigarettes

1.3

2.5

3.8

5.0

6.3

12.5

 

 

 

 

Wine

 

 

 

 

 

5.3

10.4

15.3

20.2

24.9

*Assuming no behavioural change by consumers.