Ireland: Tobacco Fee for Retailers to Cost 10 Times More

Source from:  Irish Examiner  10/16/2013

Retailers will be forced to pay significantly higher fees if they want to keep selling tobacco products under anti-smoking measures set to be revealed today.

The Irish Examiner has learned that, as part of budget 2014, Finance Minister Michael Noonan will tell shop owners they face a tenfold licence fee rise from next year in order to sell cigarettes and tobacco.

The rate, which will see the annual cost surge from €50 to €500, is expected to bring in at least €5m in extra funding ring-fenced for the health service.

While the move has led to anger among the retail community, it is likely to receive major support from cancer and heart disease prevention groups.

Under the plan, part of Health Minister James Reilly's long-stated goal to stub out smoking by 2025, more than 11,000 shops will be told the €50 charge is to rise substantially.

Most outlets will be told they must pay the €500 fee, with slightly lower rates for smaller stores.

The move will not be introduced until specific legislation is signed into law by the Oireachtas over the coming months.

However, it is likely the policy will be in place by the start of next year.

Independent senator and consultant oncologist John Crown told the Irish Examiner the policy will encourage retailers to "stop being dealers in death".

"I think it's great," said Prof Crown. "Any extra provision for health is to be welcomed, and I'm delighted that's where the money is coming from."

Prof Crown said pressure group www.sos2030.com is encouraging Ireland to ban the sale of cigarettes.

However, Retail Excellence Ireland said that the increase was an "unprecedented" attack, with chief executive David Fitzsimons saying it would have no impact on the public's smoking habits.

"This is not about health and I very much doubt the money will be ring-fenced for health or smoking services," said Mr Fitzsimons.

"As a budgetary method, this will in no way impact on people's smoking habits. It is just a tax on legitimate retailers.

"One third of all cigarette sales are from illegitimate means, mainly people coming back from holidays or the black market, so they will just keep on going there to get cigarettes.

"It's an unprecedented increase and something like that will have a bad effect on smaller stores."

Dr Reilly has previously said he wants Ireland's smoking rate to drop from 29% to just 5% by 2025.

Speaking in July. Dr Reilly — whose father and brother, who were also doctors and who both passed away from tobacco-related illnesses — said: "It's the only product I know that is legally, freely available that will kill you if you use it, according to the manufacturers and so on."

More than 5,000 people die from tobacco-related illnesses in Ireland every year, with Department of Health statistics showing one in two smokers will die from their habit. Enditem