asked the Minister for Finance whether, by virtue of the recent trade treaty with Britain, there is any obligation on the Government to increase the rate of tax on tobacco and cigarettes to the level now operating in Britain; and if, having regard to reports to that effect circulating in Britain, he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Tax On Tobacco And Cigarettes.
8.
There is no obligation on the Government under the Free Trade Area Agreement to increase the rate of tax on tobacco and cigarettes to the level operating in Britain.
Would the Minister investigate statements which are being circulated generally in the tobacco industry in London to the effect that the duty on tobacco and cigarettes in Ireland will under the forthcoming Budget go to the same level as is now operating in England because of the Free Trade Agreement?
I do not think I have to investigate any such statements because there is no truth whatever in them and the only obligation the Irish Government have under the Free Trade Area Agreement with Britain is to harmonise our revenue duties in so far as they contain any protective element with those operating in Britain. There is no question whatever of any protective element being invloved in the revenue duty applicable to cigarettes and tobacco.
I can assure the Minister that these statements are being made in London at the present time and it may be in this country's interest to rebut them.
As long as the people who buy cigarettes and tobacco here will not have to pay more, they do not need to worry.
Cigarettes and tobacco are not available at present in full supply. There has been a tightening up by the Department.
That is a regular feature before every Budget.
It is no indication that they are going up under the Budget?
No; it is a regular feature before every Budget. The Revenue Commissioners put certain restrictions on the taking out of bond of excisable commodities.
It might be a good idea to reduce the excise sometimes in order to catch smart people.
It would be a very good idea.
It will not happen this year
You never know.