As part of Budget 2026, the cost of a 20-pack of cigarettes will rise by 50c, though there will be no change in excise duty on alcohol, reports RTE.
Finance Minister Paschal Donohoe told the Dáil that excise on other tobacco products would also rise proportionally.
Smokers’ advocacy group Forest pointed out that the tax hike will bring the price of the most popular cigarette brands to nearly €19 per pack for the first time. The group argued that this move will “drive even more smokers to the black market”, reports RTE.
“Alternatively, many will buy their tobacco abroad where the cost is often significantly cheaper than at home. Punishing consumers, especially those from poorer backgrounds, by repeatedly raising the tax on tobacco is not only unfair, it’s also counter-productive because it will hurt legitimate retailers in Ireland,” reports RTE.
A previously announced tax of 50c per millilitre on nicotine-containing e-liquids for vaping products, confirmed in September, is due to take effect on 1 November.
The tax will increase the price of a standard 2ml disposable vape by €1, while doubling the price of a typical 10ml refill bottle from €5 to €10, reports RTE.
Despite lobbying from the drinks industry for a 10% cut in duty, excise rates on alcohol have been left unchanged. Ireland continues to have the second-highest wine duty and the third-highest on beer and spirits in the EU.
Donall O’Keeffe, CEO of the Licensed Vintners Association (LVA), said: “With Irish drinking consumption now at average European levels, this has long since passed being a measure aimed at encouraging moderation. It is the Government imposing a tax on people’s socialising. In fact it is a tax upon a tax, with VAT also being charged,” reports RTE.
Alcohol Action Ireland had urged a 15% increase in excise and argued for linking both duty and minimum unit pricing to inflation.
The group criticised the freeze, stating that this marks the 12th consecutive year without a change in alcohol duties, weakening their impact in real terms by at least 15%.
AAI CEO Dr Sheila Gilheany said: “Another sweetener to the alcohol industry by a government that loves to promote its public health credentials when it comes to tobacco but chooses to look the other way when it comes to alcohol, which is strange considering alcohol harm likely costs the state twice as much as tobacco,” reports RTE.
Minister Donohoe also unveiled plans to introduce a new pool betting duty.
He explained that while pool betting is currently limited to just two operators, the soon-to-be-established Gambling Regulatory Authority may be granted power in this area, reports RTE.
This change could lead operators to restructure their businesses to avoid existing betting levies, making it necessary to implement a specific duty for pool betting, he said.
Mr Donohoe added that his department would consult with key stakeholders to determine the appropriate design and implementation of the new duty, reports RTE.
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