TOBACCO:THE PRICE of cigarettes and diesel went up in the Budget, but petrol and alcohol prices remain unchanged.
The price of a packet of 20 cigarettes increased by 25 cent at midnight last night. There was also a pro-rata increase on other tobacco products. The tax on diesel went up by five cent per litre, also from midnight.
Minister for Finance Brian Lenihan said there was no scope to raise excise duty on petrol or alcohol as further tax increases would encourage consumers to buy these items across the Border.
Anti-smoking campaigners criticised the size of the price hike on cigarettes. ASH Ireland, which had sought a €2 increase, said this approach to tobacco price was contrary to the Government’s policy of creating a tobacco-free society.
The Irish Heart Foundation said it appeared that the Minister had “bought into the false arguments about smuggling and in so doing he has exposed another generation of our young people to the dangerous effects of smoking”.
The Irish Cancer Society said it was “very surprised” that the Government didn’t use the Budget as a weapon in the fight against cancer.
Alcohol Action Ireland said the decision not to increase excise on alcohol was a “lost opportunity” to raise revenue for health services and reduce the harm caused by alcohol. It said there had only been three increases in excise duty in the past 15 years yet the industry had benefited from successive price increases.
The Automobile Association of Ireland said the Budget “could have been worse” but it was disappointed at the diesel increase and the rise in the motor insurance levy from 2 to 3 per cent.
