Budget 2018: Cigarettes up, no change to Excise

The urges over the past year by various lobby groups within the industry to reduce excise on alcohol appear to have gone unnoticed by the Department of Finance, as the duty on alcohol remains untouched in the Budget 2018 announcement.



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10 October 2017

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The reactions to the Budget 2018 announcement by minister Paschal Donohoe have been mixed, with Ibec stating its measures will promote growth and job creation, while RGDATA points to the potential regulatory burdens the new sugar tax might place on retailers.

According to the minister’s speech, the price of 20 cigarettes will increase by 50c, while excise duty on alcohol – which many industry groups lobbied to decrease in order to help with the Brexit challenges – remains unchanged.

Donohoe said that economic growth is expected to continue to the tune of 4.3% this year and 3.5% next year.

Tara Buckley, RGDATA’s director general said that some of the measures introduced by Minister Donohoe would be warmly welcomed by retailers, in particular additional funding for the gardaí and an increased allocation for rural development. Buckley added that she hoped that the tax reductions and social protection increases would lead to increased expenditure in local shops and services.

“We note the proposal regarding the sugar tax,” said Buckley, “and will seek to ensure that the collection of this new tax from April next year will not add more regulatory burdens on local shopkeepers. It is also important that the operation of this new tax is monitored to assess if it achieves its public health objectives, rather than just being another charge on consumers.”

Meanwhile, Ibec CEO Danny McCoy said that the Budget is a positive one for business, employment and the wider economy. “The income tax package is a welcome change of direction towards reducing the burden on average income earners,” McCoy said, “and it will help businesses to attract and retain talent.

“The business community is confident that following the publication of the new 10 year capital spending plan later this year, Ireland will be on the way to making real progress in delivering an ambitious investment programme which will improve the quality of life for all,” McCoy said.




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