Cigarettes:The price of a packet of 20 cigarettes went up by 50 cents at midnight, following yesterday's Budget, writes Eithne Donnellan, Health Correspondent
The increase in excise duty on cigarettes and all tobacco products is expected to yield €2 million for the Exchequer between now and the end of the year and a further €112 million over the whole of next year.
Announcing the increase and warning there would be further increases in the years ahead, Minister for Finance Brian Cowen said smoking was one of the biggest contributors to ill health in the State.
"This increase serves to underline the desire of us all to curtail the consumption of tobacco, particularly among young people where price sensitivities are greatest," he said.
"I believe that we should plan for further increases in tobacco excises for a period ahead, so as to keep the level of tax increasing in real terms and I am discussing such a formula with the Minister for Health and Children.
"These steps are being taken as a health promotion measure and it would be helpful if in that spirit the social partners were to agree to discount some or all of the effect of such price increases in fixing on the relevant inflation benchmark."
It was the first time in three years that tax on tobacco products increased in the Budget and while the move was welcomed by anti-smoking groups, they said the price increase should have been higher.
Prof Luke Clancy, chairman of Ash Ireland, said he expected a much more significant increase. "The Government has missed an opportunity as I believe the public would generally have accepted a more substantial increase," he said.
"If the Government is serious about achieving a tobacco-free society then the price nettle must be grasped."
The Irish Cancer Society said the Government was allowing the tobacco industry to prey on young people by deciding not to place "a sufficient increase" on the price of cigarettes.
The Irish Heart Foundation said it regretted Mr Cowen did not add €2 to the price of a packet of cigarettes.