Retailers’ shock at €1,800 license fee

Outgoing Minister of Health Stephen Donnelly recently signed a new licence fee arrangement for Tobacco and Nicotine Inhaling Products, Donna Ahern reports
24 January 2025
A significant shift is on the horizon for retailers selling tobacco and nicotine inhaling products. In a move aimed at strengthening public health regulation, outgoing Minister of Health Stephen Donnelly has signed a new licensing system that will require retailers to pay annual fees to sell these products. According to www. legislation.ie beginning on 2 February 2026, retailers will need to pay €800 to sell vapes and €1,000 to sell tobacco as part of this newly introduced scheme under The Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023.
Until now, tobacco retailers faced a one-time €50 fee, and there were no licensing requirements for selling vapes. This new measure will affect all shops selling these products, including individual outlets within larger chains, and the license will require annual renewal. This shift signifies a more robust approach to the regulation of tobacco and nicotine inhaling products, emphasising the government’s commitment to public health and consumer safety.
As this licensing system prepares to take effect, it is important to consider the broader implications—both for retailers and the industry.
We will continue to track developments as this new system rolls out and its impact on the retail industry. It is clear that regulation in this area is becoming more stringent, and only time will tell how these changes will shape the landscape of tobacco and nicotine sales in Ireland.
The Convenience Stores & Newsagents Association (CSNA) of Ireland, which represents retailers of all sizes, from independent shops to multi-franchise owners, has expressed concern that the new combined €1,800 annual license fee will come as a shock to many tobacco retailers in the convenience, forecourt, and newsagent sectors.
Commenting, Vincent Jennings, CEO, CSNA, said: “How did the departing Minister (rejected by his constituents in Wicklow) arrive at this exorbitant figure? A quick run through the individual licenses collected by Revenue show that the overwhelming majority of Excise Licences are €500 or less.
“Even the Department of Health, when they introduced fees for Sun Tanning establishments set a figure of €120 per premises; these premises are subject to many of the same restrictions as apply to tobacco and vaping control and are visited by the Environmental Health Officers (EHO) on behalf of HSE,” he highlighted.

Vincent Jennings, CEO, CSNA
“Many countries have registration (as Ireland has since 2009) or a Licencing system for tobacco retailers, none have set an annual fee as high as that selected by Minister Donnelly.
“Our neighbours in Northern Ireland, Scotland and the rest of the UK do not charge a licence fee.”
Jennings highlighted that in the 38 States in America where fees are applied, they range from $6 to $800, with the average fee being $250.
“In Australia, where six of the seven territories seek licence fees from retailers, the average fee is less than the AUD equivalent of €250, even allowing for the outlier that is Tasmania which has a fee that is three times higher than the nearest State,” he added.
“While it may be considered to be a “victory” for Tobacco Control exponents if setting such a high annual fee forces some small retailers to discontinue selling tobacco products, there is absolutely no evidence anywhere in any of the tobacco control literature and peer reviews that shows this outcome (fewer sellers) has led to reduced prevalence of smokers, which must surely be the primary objective for the Department, not the impoverishing of shops serving a demand.
“In other jurisdictions where a licence fee has been initiated, retailers were free to consider raising the retail price of the tobacco products to cover the fees but Irish retailers are not allowed to set their own prices, the State has granted that right to the tobacco companies. It is a criminal offence for any retailer in the Irish Republic to sell cigarettes at a price higher than the price set by the brand owner.
“The price of essentials (milk, bread, etc) will need to be increased to allow the sale of these carcinogenic products remain at a price determined by their manufacturers! CSNA represents over 1500 convenience stores that sell, amongst other products, tobacco.
“We sell to adults; our staff are fully trained, and we adhere to all of the legislative provisions,” Jennings stated.
“We need the Department of Health to publish the SME Test that accompanied the Statutory Instrument 736 of 2024 that set out the fees. We need to be convinced that there is a solid, coherent and evidence-based approach for setting a fee at such a high level and that there isn’t a desire to reduce the number of outlets without any proof this will reduce smoking prevalence; fewer cigarettes consumed does not equate to fewer smokers.
“Tasmania, despite having the highest fee in Australia, and despite a significant number of outlets choosing to cease selling cigarettes, still has the highest smoking prevalence rate in the Country, four years after the fee increases.
“This was repeated in New York, Philadelphia and South Australia where the imposition of fees caused stores to cease selling but there weren’t any proven benefits to Public Health.
“Without doubt, the most effective form of tobacco control is the retail price of the product, allow retailers to set their own price once it is at least on a par with the recommended price of the manufacturer.
“The Department of Health has a real opportunity to effect real change by seeking the abolition of tobacco as a product that enjoys a tax incentive in freedom of movement of goods between Member States. They should also seek to exclude tobacco from having Duty-Free status at ports, airports and carriers.
“As long as there are legal incentives for smokers to obtain tobacco at prices lower than those in Irish stores (who are currently only selling 66% of all tobacco consumed in Ireland), it is grossly unfair to our legitimate, tax-paying sector to expect us to pay such outrageous fees, unless the State does everything in its power to reduce the inflow of goods that dilute the effectiveness of its message.”
How the industry responded

David Melinn, country manager BAT Ireland
Commenting on the potential impact on the retail sector David Melinn, country manager, BAT Ireland, said: “There is a lot of pressure on small business at the moment, so we urge the next government to work closely with industry to ensure that the new licencing system doesn’t put an undue burden on small shops, and the overwhelming majority of retailers in Ireland who take their responsibilities in selling age- gated products like vapes very seriously.”

Morgan Lee, market manager, Imperial Brands John Player Ireland
Morgan Lee, market manager, Imperial Brands John Player Ireland, noted: “Imperial Brands John Player Ireland supports the introduction of a Retail Licencing Scheme in Ireland. It will be an important tool in stamping out the many non-traditional retailers who sell non- compliant vapes in Ireland. However, a licence regime on its own is pointless unless it is matched by strict enforcement in this non-traditional sector.”
Stephen Ryan, managing director, VaporLinQ: “VaporLinQ recognises the importance of the Irish Government’s efforts to regulate vaping in a way that supports adult smokers who want to quit
while protecting young people and our environment.
“Tackling issues like youth access, disposable vape waste, and responsible advertising is crucial, and we are dedicated to maintaining our high product safety standards and promoting vaping as a solution for adult smokers transitioning to a smoke-free lifestyle.
“We hope that, in implementing these new licensing measures, the Government consults the retail sector and ensures all stakeholders are kept informed of developments during what will undoubtedly prove to be a period of transition for all concerned.”

Simon Carroll, MD, Hale Vaping
Simon Carroll, MD, Hale Vaping, said: “As a company, we fully support all measures to ensure that vapes remain strictly in the hands of adult vapers. We have written to the Minister for Health Stephen Donnelly and Department o cials on a number of occasions urging action on the licensing
system which is provided for under the Public Health (tobacco and nicotine inhaling products) Act 2023. We asked for this to be put in place without further delay and repeated our request for the current regulations to be fully implemented regarding the sale of vaping products.
“Rigorous and active enforcement of the licensing system, with regular testing, and severe penalties for non-compliance, will dramatically limit the availability of vaping products to children, and substantially quell the black market.
“The safety and well-being of our community and compliance with regulations are a priority for our business and our 3,500 retail partners. Supporting our retail partners around education of current and new regulation of vaping is a priority for us.”
How the retailers responded
Speaking to ShelfLife, Corkonian retailer William O’Brien, owner, SPAR, Mc Curtain St. Cork city, said: “In the first quarter of 2024, as a nation, we witnessed the closure of a significant number of businesses, with the hospitality sector in particular being hit hardest. There is an elephant in the room when it comes to doing business in Ireland, and it appears the political elite are seriously disconnected from what is happening on the ground. I have been genuinely surprised by how big the problem is.

William O’Brien, owner, SPAR, Mc Curtain St. Cork city
“The imposition of the €1,800 fee, combined with all the other costs imposed recently, is driving up the cost of doing business in Ireland. The €1,800 licensing fee is not just another nail in the coffin for some retailers—it’s more like being buried alive.
“What is also alarming is the number of retailers looking to exit the business. In the last quarter of 2024, there was a surge in the sale of stores, and this trend seems to be continuing. Many older, family-run businesses feel trapped, as the younger generation doesn’t want to take over. They view retailing as too much hassle and hard work.
“The tobacco licensing fee is just another tax. While regulation is necessary and should be supported, we already have registration and inspection processes in place. The market is ever- changing, and regulations need to be updated, but there are no real benefi ts associated with these licensing fees. No one will stop smoking or vaping because of it, nor will the illicit sale of tobacco products disappear.
“The black market is not how I want to operate my business, but I must admit, I almost have a certain admiration for those who do. Poor governance and disconnected leadership can push good people to make bad choices. For now, the imposition of this licensing fee will do more harm than good.”
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