Budget 2024: Campaigners say tobacco tax hike will push people to into the black market

Michael Bolton

Campaigners have criticised the announcement by Minister for Finance Michael McGrath in the budget of an excise tax hike of 75 cent on a pack of 20 cigarettes, bringing the price to €16.75.

A part of Budget 2024, an increase was announced on the price of a packet of cigarettes by 75 cent, with a new domestic tax will also be introduced on e-cigarettes.

The tax on e-cigarettes is set to be introduced next year.

This decision has been criticised by lobby group Forest Ireland, with spokesperson John Mallon claiming people are being punished for "enjoying a perfectly legitimate habit."

"Smokers don't deserve this. Annual tax hikes on tobacco are punishing consumers for enjoying a perfectly legitimate habit.

"Not only does it discriminate against consumers on lower incomes, it will drive even more smokers to the black market.

"Excise duty on tobacco was already at punitive levels. Raising it again by 75 cent is a spiteful attack on law-abiding consumers.

"Legitimate retailers will lose business to criminal gangs, and smokers who stay within the law will be further punished compared to those who, understandably, buy their tobacco from illicit traders."

However, the Irish Heart Foundation welcomed the Budget announcement of a new tax on e-cigarettes, along with a 75c increase in the price of a pack of cigarettes.

Director of Advocacy, Chris Macey, said the tax on vapes is a crucial measure to protect children’s health and reduce youth use of e-cigarettes - but insists it must be introduced now, rather than in next year’s Budget.

While the 75 cent increase fell significantly below the charity's call for a €2.10 increase, he said it represents an additional deterrent to discourage young people from starting to smoke.

“Nicotine is one of the most addictive substances on the planet and there has been an explosion in youth use of e-cigarettes that has been further fuelled by the advent of disposable vapes,” said Mr Macey.

“We can’t afford to wait a moment longer than necessary to impose this tax.

“The Government knows the threat they pose to the future health of our children and that higher taxes could significantly reduce the number of child vapers because of their sensitivity to price increases.”