In the Irish budget for 2024, it has been reported by Buzz on October 10th that cigarette prices will be increased, and starting in 2025, e-cigarette products will be taxed. The Irish Finance Minister, Michael McGrath, has confirmed this price hike, while also revealing that the prices of alcohol products will remain unchanged.
McGrath announced at the conference that the total budget for 2024 will reach 14 billion euros. The budget proposal includes a 75 euro cent increase in the tobacco tax, resulting in a price increase for the most popular cigarette pack to 16.75 euros. Other tobacco products will also see proportional increases. This marks the eighth consecutive year of cigarette tax hikes, with the largest increase during this period. In the past seven years, the tax on a pack of 20 cigarettes increased by 50 euro cents each time.
The Irish Heart Foundation (IHF) believes that the recent increase in tobacco tax is still not enough. The healthcare charity has called for an annual increase of €2.10 in cigarette duty over the next two years. IHF hopes that by doing so, the price of a pack of cigarettes will reach €20 by 2025, in order to combat the growing trend of young people smoking.
McGrath also announced that the 2025 budget will impose domestic taxes on e-cigarette products.
Previously, proposals for the 2024 budget by charitable organizations also included raising the price of e-cigarette liquids, but without excessively punishing individuals who use e-cigarettes as a smoking cessation method. “Disposable e-cigarettes are priced at nearly 8 euros, making the cost of using e-cigarettes almost half that of smoking for young people,” said a representative of the charitable organization.
However, Magras told the House that “in drafting this legislation, my department and the tax department need to undertake extensive preparation work” when the budget was announced.
The Irish Heart Foundation has proposed an increase of 10 euro cents per milliliter in e-cigarette liquid tax. This would mean a typical increase of 25% in the price of disposable e-cigarettes, or an additional 2 euros per e-cigarette.
