Retailers take Government to court over “punitive” €22m tobacco fee hike
Vincent Jennings, CEO of the CSNA
High Court grants CSNA leave for judicial review on licence charges
Print28 May 2025
The Convenience Stores & Newsagents Association (CSNA), which represents 1,350 members across 1,500 stores nationwide, has been granted leave by the High Court in Dublin to proceed with a Judicial Review challenging the Government’s dramatic increase in tobacco and nicotine-inhaling product licensing fees.
The new charges – due to take effect in February 2026 – will impose a €1,800 annual fee per store, up from just €50 per company, hitting small retailers already under financial strain.
With over 12,500 outlets affected, the Government stands to collect more than €22 million through these new regulations.
“We believe the Minister for Health has overreached by imposing excessive and unjustified licensing fees without proper consultation,” said Vincent Jennings, CEO of the CSNA.
“These charges aren’t just punitive – they unfairly target small retailers already facing soaring costs and regulatory pressure. From day one, we’ve sought engagement – not to oppose licensing – but to ensure it is fair, transparent and workable.”
CSNA’s attempts at engagement
When the Government first announced the new licensing structure, the CSNA lobbied to represent the views of retailers, which included:
- Multiple formal requests for meetings with Minister for Health Stephen Donnelly and Minister of State Colm Burke
- Direct engagement with TDs and Senators during Dáil debates
- Written submissions to the Joint Oireachtas Committee on Health requesting pre-legislative input
Despite this, the CSNA claim no representative of the 12,500 legally registered retail outlets was invited to present at committee stage.
When repeated appeals went unanswered, the CSNA escalated the matter to the Office of the Ombudsman, citing more than six unacknowledged communications – all to no avail.
Then, on 17 December 2024, after he lost his Dáil seat, Minister Donnelly signed the Statutory Instrument implementing the fees. An official press release followed weeks later on 20th January 2025, stating that the fees might “dissuade” some retailers from applying – a suggestion never mentioned in the legislation itself.
Why this fight matters: CSNA
- Retailers are being punished for selling legal products. In 2023, the Government took in €1.047 billion from tobacco excise and product tax (Revenue.ie), while the illicit tobacco trade now accounts for 34% of all sales – a growing concern left unaddressed.
- The fees are arbitrary and lack transparency. Framed as “setup costs,” the new charges are ongoing, with no explanation of how figures were calculated or how long they’ll remain in force.
- A dangerous precedent is being set. If left unchallenged, this could pave the way for more arbitrary, excessive charges on small businesses across other sectors.
Taking it to the courts
CSNA noted that it is working with licensing solicitors and Senior Counsel, filed its case on 17 March 2025, within the legal window following the fee announcement.
Today, the High Court granted leave to proceed with a Judicial Review, marking a key step forward in the CSNA’s challenge to the legality and fairness of the new charges, the group highlighted.
“The great news, delivered by Senior Counsel, marks a major milestone in the CSNA’s long-standing efforts to advocate for fair treatment of independent retailers,” said Jennings.
“This development means the CSNA will now have the opportunity to contest the legality and fairness of the new fees in court – a critical step in standing up for its members and challenging what it believes are excessive and unjustified charges.”
CSNA’s legal challenge at a glance
- Demanding a fair and transparent system based on real costs and retailer input
- Challenging ministerial overreach, arguing the Minister acted ultra vires
- Protecting local businesses, which form the backbone of communities and cannot absorb disproportionate financial burdens
What retailers say: New survey results
To understand how these fees affect the frontline, the CSNA surveyed its members:
- 100% reported recent cost increases affecting their business (e.g. national minimum wage and energy costs)
- 96% felt they were not consulted about the fees
- 96% said the fees are unfair
- 70% only learned of the fees via CSNA
- 80% said they would support legal action or further advocacy
“This is not just about one fee – it’s about fairness and respect,” Jennings added. “Retailers have had enough. If the Government won’t stand up for small business, we will.”
The Judicial Review is expected to be heard in the High Court in October or November 2025.
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