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Another 50c increase puts the price of a packet of cigarettes up to €15

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Noel Anderson

Noel Anderson

Noel Anderson

The 50c tobacco tax hike announced in yesterday’s Budget will see the price of a packet of 20 cigarettes rising to €15.

It includes a pro-rata increase for all tobacco and nicotine products.

It is the sixth year in a row in which an extra 50c has been added to a pack of cigarettes.

Despite the continued increase of the tariff, groups including the Irish Heart Foundation (IHF) feel not enough is being done to tackle smoking.

The IHF said the 2022 Budget is a “triple whammy against children’s health following the failure to sufficiently tackle increasing youth smoking, the growing popularity of e-cigarettes among teenagers, and a childhood obesity crisis made worse by the Covid-19 pandemic”.

It argues €2 should have been added to each pack of cigarettes in the Budget.

Finance Minister Paschal Donohoe meanwhile announced that there will be no increase in taxes on alcohol sales – either in off-licences or in pubs and restaurants.

The news was welcomed by industry groups such as the Vintners’ Federation of Ireland following a tough year where many premises were closed due to the Covid pandemic.

VFI chief executive Padraig Cribben said: “While we welcome the fact excise duty is not increased, this was a missed opportunity to lower Europe’s second highest tax on alcohol. Reducing excise duty would incentivise publicans to reinvest in their businesses and increase our competitiveness once tourists do return.”

The chairman of the Licensed Vintners Association (LVA) for Dublin has said he is “very happy” about the extension of the Employment Wage Subsidy Scheme (EWSS).

Noel Anderson owns two bars in Dublin, The Bridge 1859 and Lemon & Duke.

He said that the extension will help with staff shortages in the hospitality sector.

However, Mr Anderson said that he is “genuinely disappointed” and concerned that the reduced VAT rate of 9pc for the sector will likely be discontinued at the end of August next year.

“Huge concern around the 9pc VAT rate.

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“It is greatly concerning that come September 2022, the hospitality VAT rate will increase to 13.5pc – a jump
of 50pc on the current levels,” he added.

Mr Anderson said that the LVA will continue to engage with the Government on this issue.


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