State got €128m less in tobacco taxes

Tax returns from tobacco revenue were €128 million down on the previous year when the smoking ban was introduced, Minister of…

Tax returns from tobacco revenue were €128 million down on the previous year when the smoking ban was introduced, Minister of State for Health Seán Power said yesterday.

At a first-anniversary celebration of the smoking ban in Dublin, Mr Power said that usually when the Government introduced new measures their success was judged on how much revenue they generated.

"This time it's different. We are looking for the reductions in returns to see how successful it is, and there is a shortfall in tobacco revenue of €128 million on the previous year," he said.

Yesterday a Department of Finance spokesman said the figure was the most recent recorded estimate, but the latest tentative figures suggested that excise receipts for tobacco were down by around €100 million, so that the reduction was €1.15 billion down to €1.05 billion.

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Prof Luke Clancy said a study carried out at St James's Hospital, Dublin, had confirmed the reduction in second-hand smoke exposure at work. The research showed that it had cleaned toxic substances from the air.

"Are we better for it? I think we are. From the preliminary results we can see that it does improve health," he said.

"The air is cleaner, carbon dioxide that people breathe out is lower, and that has to be good for health, particularly cardio-vascular health.

"We know that it will take time before the cancer benefits are obvious, but the other ones in respiratory and cardio-vascular health will come quickly."

Chairman of the Office of Tobacco Control Dr Michael Boland said: "What we've seen over this last year has been a major success for all of us."