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Wednesday 29 November 2023 Dublin: 5°C
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budget 2023

Cost of cigarettes to increase but price of a pint remains the same

There will also be pro-rata increases on other tobacco products.

LAST UPDATE | Sep 27th 2022, 3:45 PM

THE COST OF a pack of 20 cigarettes is set to jump by 50 cent as the result of an increase in excise duty.

There will also be a pro-rata increase on other tobacco products.

Finance Minister Pascal Donohoe said this will “support public health policy to reduce smoking in Irish society”. 

A 0% VAT rate will also be applied to nicotine replacement therapies.

However, the price of alcohol will remain the same and a 50% excise relief has been announced to independent small producers of cider and pear cider.

Alcohol Action Ireland welcomed the flat rate and said the “government has not acquiesced to the pressure from alcohol producers to reduce excise duties, which would have enhanced affordability of alcohol”.

Elsehwere, Paul Clancy, the Chief Executive of the Vintners’ Federation of Ireland, said he was seeking a 7.5% reduction in excise on alcohol but added that he is “happy” that there is no increase. 

A reduced VAT of 9% for the hospitality sector will remain in place until the end of February next year, and Clancy called for that to be further extended. 

However, he said the energy support scheme “was by far” the biggest positive for VFI’s members and added that it was “much needed”. 

Meanwhile, in a big to “support the night time economy”, Minister Donohoe halved the cost of applying for a ‘Special Exemption Order’.

Late night venues require this in order to open.

This move will reduce the excise fees for a special exemption application order from €110 to €55.

Speaking after announcing the measure, Minister Donohoe said it comes “ahead of longer term reforms which will be announced when the General Scheme of the Sale of Alcohol Bill is published within weeks”. 

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