Health chiefs demand hike in tobacco taxes

Kathleen O’Meara, the charity’s head of advocacy and communications, called for the Government to act quickly to protect public health policy.

“They must continue to maintain high prices by increasing tax on cigarettes and loose tobacco,” she said.

“Second, they must bring in legislation immediately to prohibit tobacco manufacturers from selling tobacco products at a loss.”

Anti-smoking lobby group Ash Ireland said price was the single most important factor in getting people to quit.

Dr Angie Brown said: “Ireland has and is permitted to have a separate tax regime to all other EU countries – and it is our view that the government has every right to apply taxes which ensures that tobacco is sold at current and even higher prices.

“Price is well established as the most important measure in encouraging smokers to quit and discouraging young people from starting to smoke and we must always bear this in mind when legislating on tobacco price.

“Smoking kills 7,000 people in this country each year and costs the exchequer over €1bn in treating tobacco related illness and disease – and we must ensure than neither of these alarming statistics are increased.”

Tobacco and cigarette smuggling has become a massive black-market money-spinner for crime gangs in the last few years. It is estimated that up to a quarter of cigarettes smoked in Ireland are illegal.

Ms O’Meara said: “It is also now vitally important that the Government take measures to combat the very serious problem of tobacco smuggling which accounts for 20% of all cigarettes smoked in Ireland in order to ensure that high price policy is effective in reducing consumption.”

Meanwhile the Irish Heart Foundation has said it is "gravely concerned" about the possible consequences of the ruling

“As the national charity fighting heart disease and stroke, we are gravely concerned about the detrimental impact that today’s European Court of Justice ruling on minimum cigarette prices imposed in Ireland, could have on the nation’s health," said IHF Chief Executive Michael O’Shea.

"To protect the nation especially our young people, it is imperative that the latest ruling does not result in a failure to maintain cigarette prices at current levels which currently acts as a major deterrent to new and existing smokers."

The IHF said it had written to the Government to outline its concerns, and called for excise on tobacco to be increased to at least maintain the status quo.

Toby Granwal, general manager of PJ Carroll, Ireland’s oldest tobacco company, said setting minimum prices for cigarettes is irrelevant.

“Packs of cigarettes are being purchased up and down the country for as little as 3.50 euro on the black market. This is under half the current minimum price,” Mr Granwal said.

He claimed the state lost more than €500m in revenue last year because of the illicit tobacco trade.

Mr Granwal also hit out at the high excise duties already imposed on tobacco.

“Ireland’s tax rates and prices for cigarettes are the highest in the EU,” he said.

“Ireland also suffers from one of the highest levels of illicit trade in Europe. Unless the Government were to significantly revise the tax level to help reduce the smuggling problem, with or without a set minimum price, the cost of an Irish packet of cigarettes is still going to be the most expensive in the EU because of the high tax.”