Sunday 28 May 2017

'This is the only tax increase in the Budget,' Michael Noonan reveals

Public Expenditure Minister Paschal Donohoe and Finance Minister Michael Noonan on Budget Day
Public Expenditure Minister Paschal Donohoe and Finance Minister Michael Noonan on Budget Day

Cormac McQuinn Political Correspondent

FINANCE Minister Michael Noonan announced a 50c hike in the cost cigarettes telling TDs "you'll be pleased to hear this is the only tax increase in the Budget".

The move means that a pack of 20 cigarettes will now cost €11 while there will be a pro-rata increase on other tobacco products.

Meanwhile, he also announced that he intends to bring in a new tax on sugar-sweetened drinks but it won't kick in until 2018.

He said that this is so that it coincides with the introduction of a similar measure in Britain.

Mr Noonan said it's important that the tax is "as effective as possible, as fair as possible, and minimises the administrative burden on businesses".

He said that production and supply chains for such drinks in Ireland and the United Kingdom are "highly integrated" and that's why he's holding off on bringing in the tax until April 2018, when the British government will introduce theirs.

Mr Noonan announced the beginning of a public consultation process for the sugary drink tax.

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