SMOKERS HIT WITH A 50C PRICE INCREASE

SMOKERS have been hit by a 50c hike in cigarette prices.

It means the price of a packet of 20 cigarettes will hit €12.70 in most cases, while those priced under €11 will now have the same tax levied on them as more expensive alternatives.

Smokers were also targeted in last year’s budget when the minister also increased the cost of a pack of 20 by 50c.

The Irish Cancer Society welcomed the increase. Donal Buggy, head of advocacy with the group, said that the hike would ‘encourage people to stop smoking and ultimately save lives’.

But he warned that increases alone would not achieve a tobacco-free Ireland by 2025.

‘Price increases, while hugely important in increasing quit rates, need to be accompanied by readily available supports for smokers to quit,’ he said.

However, Retailers Against Smuggling said that an increase in tax on tobacco would not increase Government revenue as it could fuel smuggling.

The lobby group said the price hike made Ireland the most expensive place in the EU to buy cigarettes.

‘Today’s decision is another slap in the face to retailers that have been compliant with every decision made by this Government,’ the group’s spokesman Benny Gilsenan said. Although alcohol escaped an increase in excise duty, the hospitality sector was hit by an increase in VAT rates. It means that the tax levied on food and drink sold in the hospitality sector will increase from 9% to 13.5%. Alcohol Action said it was disappointed by the failure to increase excise on alcohol.