Dáil Éireann Debate, Thursday - 1 April 2021
76. Deputy Louise O'Reilly asked the Minister for Finance the annual increases in the retail price of the most popular price category for a 20-pack of cigarettes since 2011; the portion of the increase related to taxes; the portion of the increase due to price rises by the tobacco industry in tabular form; and if he will make a statement on the matter. [17692/21]
View answer77. Deputy Louise O'Reilly asked the Minister for Finance the estimated revenue that would be raised annually if tobacco taxation were to be increased annually on a pro-rata basis in order that all packs of 20 cigarettes cost at least €20 by 2025; the estimated revenue that would be raised annually if an equivalent annual tobacco tax on roll-your-own cigarettes was introduced; and if he will make a statement on the matter. [17693/21]
View answerI propose to take Questions Nos. 76 and 77 together.
I am advised by Revenue that the annual increases in the retail price of the most popular price category (MPPC) for a 20 pack of cigarettes since 2011 are shown in the table below, together with the portions related to tax increases and trade increases.
|
Year |
MPPC |
Tax |
Trade |
Total |
MPPC |
|
- |
at 1 January |
Increase |
Increase |
Increase |
at 31 December |
|
- |
€ |
€ |
€ |
€ |
€ |
|
2011 |
8.55 |
0.25 |
0.10 |
0.35 |
8.90 |
|
2012 |
8.90 |
0.28 |
0.12 |
0.40 |
9.30 |
|
2013 |
9.30 |
0.10 |
0.10 |
0.20 |
9.50 |
|
2014 |
9.50 |
0.40 |
0.10 |
0.50 |
10.00 |
|
2015 |
10.00 |
0.50 |
0.00 |
0.50 |
10.50 |
|
2016 |
10.50 |
0.50 |
0.30 |
0.80 |
11.30 |
|
2017 |
11.30 |
0.50 |
0.20 |
0.70 |
12.00 |
|
2018 |
12.00 |
0.50 |
0.20 |
0.70 |
12.70 |
|
2019 |
12.70 |
0.50 |
0.30 |
0.80 |
13.50 |
|
2020 |
13.50 |
0.30* |
0.20 |
0.50 |
14.00 |
|
2021 |
14.00 |
0.20** |
0.00 |
0.20 |
14.20*** |
*The tax increase in 2020 of €0.30 represents an increase of €0.50 in excise in October 2020 and €0.20 reduction in VAT from 23% to 21% on 1 Sep 2020.
**The tax increase in 2021 was €0.20 for the increase in VAT to 23% on 1 March 2021.
***The latest price for the MPPC at 31 March 2021 is €14.20.
In relation to Question 17693/21, I am advised that given the range of prices of cigarette packs in the market, it is not possible from the available information to estimate the yield from a minimum €20 charge on all 20 packs.
However, Revenue’s Ready Reckoner at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx
shows a wide range of detailed information, including on page 25 estimates for the yield from changes in duties on cigarettes (these estimates assume pro-rata increases in other tobacco products).
The Ready Reckoner can be used to estimate the yield from increasing the tax on a pack of 20 cigarettes to €20 from the current MPPC. The timing of the yield would depend on the timing of the price changes chosen over the period to 2025.
