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'A great day for South Armagh Duty Free' - tobacco companies are not happy...

They say that the 40 cent increase on a packet of cigarettes will play into the hands of smugglers.

TOBACCO MANUFACTURERS HAVE reacted angrily to the 40 cent excise hike on a packet of cigarettes.

The price of a packet of cigarettes will hit €10 for the first time at midnight after the decision to add 40 cent to a packet of cigarettes.

That decision has been slammed by manufacturers and lobby groups, who all say it will play into the hands of criminals.

Igor Dzaja, General Manager for lobby group JTI Ireland said: “One in four of all cigarettes consumed in Ireland avoid Irish tax, with the Exchequer estimated to be losing €240 million annually at a time when taxpayers are being asked to pay water charges.

“This move is counterproductive, as the Exchequer risks losing revenue at the expense of illegal trade and criminality in local communities. It will be warmly welcomed by cigarette smugglers who already see Ireland as a lucrative target.”

Cigarette company John Player were equally damning, saying they were “taken aback” by the increase.

“This is not the time to be further incentivising the criminal community. A parallel illegal tobacco supply chain exists in this country that pays no tax at all to the Irish Exchequer. An illegal tobacco factory was only discovered by Enforcement Officers in May this year.

Smugglers will certainly party tonight. This is a great day for ‘South Armagh Duty Free’.

Health

However, the increase has been welcomed on health grounds.

ASH Ireland, an anti-smoking group, says that price is the most important factor in encouraging smokers to quit.

Dr Ross Morgan, Chairman of ASH Ireland said today that price increases needed to continue.

“If the Government is to achieve its objective of establishing a smoke-free Ireland by 2025 then it must consistently increase the price of tobacco.

“Significant inroads have been made in regard to smoking prevalence over the past 10 years with current levels at approximately 21.7%, down from 29% in 2004.

“It would be possible to reduce smoking levels by a further 10% at least in the next 10 years if there are consistent and significant increases in tobacco price, combined with other measures such as the introduction of standardised packaging”.

ASH say that they had hoped for a VAT cut on nicotine-replacement products.

In the chamber

Speaking in the Dáil tonight, Taoiseach Enda Kenny said that the government was “mindful” of the illicit tobacco trade.

Socialist leader Joe Higgins, however, called the government “hypocritical” on the issue.

Keep up with all of our Budget coverage here

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37 Comments
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    Mute Eddie Garvey
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    Jul 15th 2024, 3:03 PM

    Probably get suspended sentences or let out early if their guilty, so not as big an impact as would be if we had a properly functioning judicial and prison service anyway. Money for old rope.

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    Mute Éamonn OKane
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    Jul 15th 2024, 4:13 PM

    @Eddie Garvey: could you do the job? Would you just prefer to see an end to trails, rambert judges in the criminal courts are drawn from the barristers.

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    Mute Eddie Garvey
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    Jul 15th 2024, 5:28 PM

    @Éamonn OKane: well having seen some excellent barristers in action and some absolutely atrocious ones as well, I probably could do as a good a job as the atrocious ones, aside from that my comment was mainly aimed at the pointless nature and expense of dragging people through the courts to suspend their sentence for no good reason or to sentence them into a system that can’t accommodate them for the duration of their sentence.

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    Mute Brian Hunt
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    Jul 15th 2024, 3:47 PM

    Snouts in the trough!

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    Mute Éamonn OKane
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    Jul 15th 2024, 4:15 PM

    @Brian Hunt: would you work for that rate of pay?

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    Mute Sal Paradise
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    Jul 15th 2024, 4:47 PM

    @Éamonn OKane: He probably doesn’t work at all.

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    Mute Brian Hunt
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    Jul 15th 2024, 6:04 PM

    @Sal Paradise: For once in your one year of posting here, you’re right, I’m retired. I’ve spent a lifetime working so that scr#&ts like you can spend all day on The Journal!

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    Mute Dave Barrett
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    Jul 15th 2024, 7:13 PM

    Why are comments about the priest in Cork closed. Is this more censorship on behalf of the Journal?

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    Mute SV3tN8M4
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    Jul 15th 2024, 9:05 PM

    Their list of top earners is staggering & worthy of viewing when you consider their sob story. This rather elitist section of society just want more & more, totally removed from everyday life of ordinary working people. They are a section of society that didn’t experience austerity during the Troika era like everyone else. Part of our failed Judicial system that is failing victims of crime on a daily basis. I see ROG out batting for them as well, so no doubt they will be given what they want. Having witnessed some of these people in action & how they treated victims from various Inquiries & Tribunals, it’s sickening to watch them looking for more, greed.

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    Mute Mark Anthony Savage
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    Jul 16th 2024, 10:54 AM

    @SV3tN8M4: That’s a bit like moaning about Clerical Officer pay because you saw the Asec pay scale.

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    Mute Jack B Quick
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    Sep 19th 2024, 10:50 PM

    @SV3tN8M4: every word of this is incorrect.

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    Mute stella Ormes
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    Jul 15th 2024, 7:07 PM

    I could never be a defence barrister because I would only defend people who were innocent

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    Mute Mark Anthony Savage
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    Jul 16th 2024, 10:58 AM

    @stella Ormes: That’s exactly what defence barristers do, only at the end of the process is guilt decided. If the defendant pleads guilty then you’re advocating, not defending.

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