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Tobacco via Shutterstock

Retailers might stop selling cigarettes if tobacco licence fee goes up

That’s according to the National Federation of Retail Newsagents.

A GROUP OF retailers has written to TDs over the proposed rise in the tobacco license fee.

The National Federation of Retail Newsagents (NFRN), which has 500 members, believes that retailers are an “easy target” for Government and that the fee might cause legitimate retailers to leave the market.

NFRN Ireland has now written to all TDs asking them to oppose plans for the tobacco licence fee to be increased to €500.

In June 2014, the then Minister for Health, James Reilly TD, obtained Cabinet approval to pursue plans to introduce the higher tobacco license fee, estimated to be €500, with the variance in the cost between supermarkets and independents to be determined.

NFRN Ireland said it is “vehemently opposed to the measure” as “once again legitimate retailers are a soft target for Government whilst criminals profit greatly from the illicit tobacco trade”.

Selling tobacco

NFRN Ireland’s Public Affairs Manager Deirdre Drennan said that some retailers will decide the profit they are making from tobacco products does not justify the fee, and will choose to no longer sell tobacco.

“As legitimate retailers leave the market there is scope for criminals to increase their market share and earn additional profits,” she stated.

Retailers are responsible in how they sell age related products as they continuously ask for ID and comply with all other regulations, yet criminals can sell cigarettes to children at a pocket money price point and face little or no consequence.

The Department of Health said:

Under current legislation any retailer wishing to sell tobacco products, whether over the counter or from a self-service vending machine, must already register with the HSE National Tobacco Control Office, be placed on the Retail Register for the sale of tobacco products and pay a registration fee. However, there is a significant anomaly in that registration is applied per retailer, rather than by premises. This means that multiple retailers like supermarket chains make a single payment, regardless of the number of outlets they have. It is proposed that this new measure will address that anomaly by licensing the sale of tobacco products in line with Tobacco Free Ireland, Ireland’s tobacco control policy. It was outlined by former Health Minister James Reilly in the last Budget.

Read: Australia’s plain cigarette packaging has not given a boost to the illicit tobacco trade>

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58 Comments
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    Mute Trevor Weafer
    Favourite Trevor Weafer
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    Sep 2nd 2014, 8:22 AM

    Excise duty in Oz has brought them nearly $1 per cigarette. That’s expensive.

    I’m off them 6 days. Not as difficult as it seemed.

    176
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    Mute Kate Ellen Egan
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    Sep 2nd 2014, 9:59 AM

    Newry and Enniskillen will reap the rewards ……and the taxes

    61
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    Mute David Cagney
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    Sep 2nd 2014, 10:34 AM

    Stick with it – The first 10 years are the worst

    40
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    Mute Aaron O Connor
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    Sep 2nd 2014, 10:36 AM

    with the exchange rates and wages it works out about the same.

    14
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    Mute Pius Flynn
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    Sep 2nd 2014, 8:18 AM

    More madness from this Gov. this will only drive the sale of tobacco products under ground where criminals can profit from it

    159
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    Mute Shane Hickey
    Favourite Shane Hickey
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    Sep 2nd 2014, 8:30 AM

    already happening

    94
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    Mute KarlMarcks
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    Sep 2nd 2014, 9:01 AM

    Hmmm!

    I know, why not license smack and blow dealers at, say, €500,000 per licence?

    That should balance the books damn quick!

    51
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    Mute Jay Coleman
    Favourite Jay Coleman
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    Sep 2nd 2014, 8:09 AM

    Well if we’re doing it for cigs then the same should apply to alcohol. But then again most of our TD’s like a pint so there’s no fear of that. Pot/kettle and black spring to mind.

    148
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    Mute David Burke
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    Sep 2nd 2014, 8:14 AM

    Tobacco is dangerous in any quantity. Alcohol has no negative effects in moderate quantities. There is a difference.

    136
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    Mute Flash Gordon
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    Sep 2nd 2014, 9:27 AM

    More people probably die from alcohol related events than tobacco – ie car crashes, suicide, etc

    68
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    Mute Simon Quinn
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    Sep 2nd 2014, 9:44 AM

    I is simply a myth that more people die from alcohol related injuries/accidents than smoking. Alcohol Ireland says that 88 deaths per month in Ireland are related to alcohol consumption. As such 1,056 people per year die from incidents related to alcohol consumption.

    However, in 2013 the Department of Health said that 7,000 people die every year due to smoking related illness. As you can see, there is a huge difference between the numbers that die from smoking related illness than from alcohol related incidents.

    Also, a quick point on car accidents, in 2012 161 people died in road traffic incidents. On average 1 in three accidents are related to alcohol, as such on average in 2012, 54 road deaths would have been attributable to alcohol. Road traffic deaths are also on the decline.

    55
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    Mute Simon Quinn
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    Sep 2nd 2014, 9:58 AM

    It will always confuse me why people give my comments thumbs down, I rarely post an opinion on and article, usually I present facts when people have posted incorrect statements. In addition I also quote sources, do people not like facts? or is it just when the facts do not back up their argument?

    34
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    Mute ÉiRed
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    Sep 2nd 2014, 10:10 AM

    Can you not just give your opinion and not worry about thumbs up or down? It’s up to people if they want to like what they read from you

    38
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    Mute Gagsy 99
    Favourite Gagsy 99
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    Sep 2nd 2014, 10:14 AM

    Lets all be nicer to Simon.

    32
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    Mute Jay Coleman
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    Sep 2nd 2014, 10:15 AM

    Alcohol related incidents must surely cost more, how many people in A&E at the weekend are in there because of an alcohol related injury, you only have to look at the dirtbags in there on Weekend nights to know they’re costing the state a fortune

    22
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    Mute Simon Quinn
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    Sep 2nd 2014, 10:20 AM

    It doesn’t bother me, just confuses me. It is the same with the thumbs up. It isn’t an opinion. They are facts. It is like someone saying they don’t like or do like the sky being blue…. it’s baffling.

    12
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    Mute Simon Quinn
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    Sep 2nd 2014, 10:26 AM

    Jay, the cost of an A and E visit is peanuts compared to the cost associated with cancer treatment drugs. Or the cost associated with cancer patient care. The overall cost associated with treating patients with smoking related illnesses in 2012 was €2 billion euro.

    This does not take into account the cost to the patient i.e. loss of income, transportation costs etc. Linda Sharp, head researcher for the National Cancer Registry conducted a study of these costs in 2010 which any one can read on their website if they are interested.

    10
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    Mute Gagsy 99
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    Sep 2nd 2014, 10:26 AM

    the sky pis$es me off being so feckin blue.

    21
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    Mute Simon Quinn
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    Sep 2nd 2014, 10:27 AM

    Ironically enough, the government receipts from taxes on cigarettes is circa € 2 billion per annum.

    18
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    Mute Jarlath Murphy
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    Sep 2nd 2014, 8:16 AM

    Filthy cancer causing sticks! Ban them all.

    126
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    Mute Gagsy 99
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    Sep 2nd 2014, 12:11 PM

    A Guinness fart (in a dutch oven)?
    A decomposing dead body?
    Egg sandwiches?
    Dogturd on your shoe?
    The jacks in work on a Monday morning?
    Old lady perfume?

    31
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    Mute VinHeffer89
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    Sep 2nd 2014, 12:19 PM

    Brilliant minds such as yourself brought us the War on Drugs forty odd years ago because banning something always negates the Law of Supply and Demand

    16
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    Mute Gerry Ivie
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    Sep 2nd 2014, 12:29 PM

    @vinheffer89… You’re a smoker , I take it. Just don’t breath your halitosis on me , thank you very much !

    3
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    Mute VinHeffer89
    Favourite VinHeffer89
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    Sep 2nd 2014, 12:44 PM

    @ Gerry; I just realise the stupidity of trying to ban and control everything. It creates demand that is supplied by criminal enterprises which leads to an unsafe product being sold to consumers to maximise profit, an upsurge in violence to due competition between rival criminal enterprises and massive amounts of police time being occupied trying to enforce laws that will be continually broken due to the opportunity to profit. This circular pattern has been the norm for the last forty years. Nicotine is a highly addictive substance, one of the most addictive in the world. To criminalise such a product would be a moronic move with disastrous consequences but that seems to have been lost on you given that you’d rather comment on making assumptions about me.

    15
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    Mute Anthony Carroll
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    Sep 3rd 2014, 6:38 AM

    I believe there is gerry, it’s coming from your mother’s crotch

    1
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    Mute Gerry Ivie
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    Sep 3rd 2014, 8:25 AM

    Never got to smell ur mothers crotch. She usually pleasured me with her mouth .

    2
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    Mute Martin Ryan
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    Sep 2nd 2014, 8:05 AM

    Raise it to €5000.

    103
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    Mute Gagsy 99
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    Sep 2nd 2014, 9:39 AM

    I think what everyone here is forgetting is how cool smoking makes you look.

    97
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    Mute Martin Hayes
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    Sep 2nd 2014, 10:37 AM

    Dragging a tank of oxygen around is cool?

    28
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    Mute Gagsy 99
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    Sep 2nd 2014, 10:58 AM

    gets you a seat on a crowded bus

    43
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    Mute Jack Bowden
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    Sep 2nd 2014, 2:22 PM

    Smoking’s sexy and glamourously fabulous too.

    11
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    Mute Neal Ireland Hello
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    Sep 2nd 2014, 8:22 AM

    “Legitimate retailers”. There’s nothing legitimate about continuing to sell tobacco decades after the world found out that it’s the cause of tens of millions of deaths every year. Find something less lethal to profit from.

    80
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    Mute Fiachra Sheil
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    Sep 2nd 2014, 8:44 AM

    YES! Precisely

    29
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    Mute Brian O'Donnell
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    Sep 2nd 2014, 8:03 AM

    Put the licence few up please

    76
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    Mute logical Thinking
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    Sep 2nd 2014, 10:49 AM

    Open the doors to the black market.. Create a bigger problem for the guards.

    Another great idea from the backwards gov.

    38
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    Mute Boganity
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    Sep 2nd 2014, 1:24 PM

    You’re not thinking logically…a trade union says it’s members are going to take a pay cut in protest against something, that ain’t never going to happen.

    7
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    Mute Tom Red
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    Sep 2nd 2014, 8:22 AM

    Do they sell cigarettes in the Dail???…
    They sell alcohol in the Dail …
    As usual the Government should practice what they preach and get their own house in order first..People know the dangers associated with smoking and drinking..Adults can and will do what they want….

    68
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    Mute fergalreid
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    Sep 2nd 2014, 8:53 AM

    I believe there’s a push from TDs and Senators to make the Oireachtas campus smoke free.

    34
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    Mute David Cagney
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    Sep 2nd 2014, 10:36 AM

    So it’ll be just Hot Air then eh?

    13
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    Mute Conor
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    Sep 2nd 2014, 8:29 AM

    Ban the cancer sticks altogether.

    46
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    Mute Ablitive
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    Sep 2nd 2014, 8:32 AM

    Coffin nails

    34
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    Mute Cpm
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    Sep 2nd 2014, 9:25 AM

    Coffin sticks

    12
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    Mute E=MC2
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    Sep 2nd 2014, 8:31 AM

    Good news for a change

    29
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    Mute Ablitive
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    Sep 2nd 2014, 8:13 AM

    Do retailers need a license to sell these chemical cigarettes?

    28
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    Mute Gus Sheridan
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    Sep 2nd 2014, 9:33 AM

    all this hairbrained idea will do is make people but from smugglers, how stupid can this government get?

    28
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    Mute Fiachra Sheil
    Favourite Fiachra Sheil
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    Sep 2nd 2014, 8:42 AM

    I think retails and their representatives need to recognise the overall issue at hand here. It’s not about hitting ‘soft targets’, it’s about the health of our population and reducing the enormous health costs imposed by smoking-related health issues. Less retailers selling cigarettes can only be a good thing.

    15
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    Mute Ian Doyle
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    Sep 2nd 2014, 9:21 AM

    why don’t they add even more tax on the cigarettes though. Not the retailer who sells them.

    14
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    Mute Joe Travers
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    Sep 2nd 2014, 10:38 AM

    Fiachra. That would be right if they banned the sale of cigs altogether but this is only a revenue raising exercise. Smokers will continue to smoke and government will continue to reap the rewards. If they really cared for our health they would ban the sale of cigs full stop.

    7
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    Mute Tara
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    Sep 2nd 2014, 10:48 AM

    Small shops rely on the custom from people who initially come in for cigarettes and cigarettes are so highly taxed that retailers shouldn’t have to pay more when the government are already making a fortune from the sale of tobacco. Smoking is a choice.

    14
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    Mute Derek hAnlúain
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    Sep 2nd 2014, 10:20 AM

    Dying for a smoke

    13
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    Mute Caroline aMarie
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    Sep 2nd 2014, 12:12 PM

    NANNY STATE

    11
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    Mute Peter McKevitt
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    Sep 2nd 2014, 11:07 AM

    Every smoker should access the black market. If the Government want to make smoking all but illegal then we should behave accorgingly

    11
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    Mute Juan Venegas
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    Sep 2nd 2014, 10:26 AM

    I think this is an eye opener and a good example of what would happen if we legalise Marijuana. I am on neither side, but seeing this similar example says that if we are to legalise weed, the retailers or pharmacies would have to pay licence fees, the user would have to pay taxes, while they could get it at half the price, just as the cigarettes black market

    2
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    Mute Lamb
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    Sep 3rd 2014, 6:53 AM

    Retailers make a tiny margin on tobacco related products. Their sales of cigarettes in convenience shop make up a greater proportoon of their turnover. They won’t stop selling cigarettes, they are just as addicted as the smokers.

    1
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