Tobacco smuggling threatens revenue boost

Anti-smoking groups and tobacco manufacturers said that the price hike will increase black market trade
Anti-smoking groups and tobacco manufacturers said that the price hike will increase black market trade
MARK STEDMAN/ROLLING NEWS

The 50c tax increase on cigarettes will not generate €60 million in extra revenue unless there is a clampdown on the sale of illegal tobacco, a public health charity and cigarette manufacturers have warned.

While tobacco companies and anti-smoking groups differed on the merits of the price hike, they both agreed that tackling the black market sale of cheap cigarettes should be a priority for the government.

Michael Noonan, the finance minister, said increasing the cost of a packet of 20 cigarettes to €10.50 should realise €61.4 million next year. He said the money would be used to support new initiatives in the health sector to support young families with children.

Action on Smoking Health (ASH) Ireland said the failure to prevent easy access to