Budget 2027 sees the price for a packet of cigarettes rise to €20.15 per day, following an increase of €1.
This means that the tax take is now €16.03, or almost 80% of the retail price.
However, according to reports in The Irish Times, this measure has been described by some TDs as an "abject failure".
It was also revealed that the pro rate price increase of a typical pouch of roll-your-own tobacco is €1.39, meaning the retail price stands at €29.72. At present, Ireland has the most expensive cigarettes in Europe, and the second highest prices in the world, behind Australia, where a 20 pack will set you back €21.02.
This price increase was accepted following a vote in the Dáil, with 100 votes in favour, versus 48 against.
The tax was introduced by Minister for Further and Higher Education, James Lawless , who said that the price increase on tobacco products would yield close to €63.1 million in a full year, and €5 million for the rest of 2026.
Mr Lawless said that the state's policy to cut smoking rates “is working, according to the evidence”. In 2007, 29 per cent of people were daily smokers, while adding: "By contrast, in 2025 that figure is reduced to 17 per cent".
However, this strategy has been criticised heavily by Labour TD, Duncan Smith, who called the policy an "abject failure", while also urging the Government to "be honest", per the Irish Times.
Mr Smith said that the Tobacco-Free Ireland strategy was introduced in 2013, when rates of smoking stood at 22%, setting a target of 5% smoking rate by 2025, but he claimed "they're at 17 per cent".
He added that the increase had “become a substitute for what should be a robust public health policy, because there are 100 deaths a week, a thousand hospitalisations a week due to smoking”.
The TD added that the figure for cigarettes may as well read €10 as it does €1.
“If you’re not backing up the taxation side with a robust public health approach, you’re going to continue to fail", he said. “This Government has to be honest about their failure” and acknowledge that “we’re miles away from where we need to be".
He claimed that successive Governments in this country have “abandoned the robust approach in favour of this old reliable” of tax increase, which has failed to make a difference.
Mr Smith went on to say that it is “regressive, not to mention the fact that almost a billion euro in revenue is being lost to the black market”.
Meanwhile, Kerry TD, Michael Healy-Rae feels that this price change will not alter the behaviour of the average smoker, but would mean “they’ll endure more hardship" if they want to continue smoking, especially people who are on low incomes.
Sinn Féin TD for Cork North Central, Thomas Gould has called on the Government “to be honest on where we are now”, and stated that “this strategy has diminishing returns”.
He added that simply pushing the prices up is "not enough" and more education is needed, referring to reports that almost €1.1 billion of unregulated illicit cigarettes were used un Ireland last year, costing more than €800 million to Revenue Commissioners.
Independent TD, Paul Gogarty also mentioned the issue of vaping and “synthetic chemicals out there” which cause psychosis. He said that this “new stuff needs to be stopped".
He added that “the revenue from excise duty on cigarettes is half of the cost to our healthcare system from people who have fallen ill because of tobacco products", and that “even allowing for the black-market risk”, there was room “for it to be increased further”.
He also said that “cigarette-butt tossers get away with murder. It’s a €250 fine but trying to actually get that fine out of them is quite difficult because of the burden of proof”, while adding that trying to prosecute them is just as tricky as “you’re not allowed to use DNA evidence”. (All quotes according to The Irish Times).
