10 cent cigarette price increase ‘hugely disappointing’ says Irish Cancer Society

The Irish Cancer Society has said it is ‘hugely disappointing’ that the Government has failed to use the opportunity to cut the high rate of smoking by introducing a tokenistic 10c increase on the price of cigarettes. The increase announced today is not the sharp spike in price that is proven to discourage people from smoking. The Irish Cancer Society called for a 60c increase in the price of tobacco in its joint pre-budget submission with the Irish Heart Foundation.

Speaking in response to the Budget this afternoon, Kathleen O’Meara, Head of Advocacy and Communications said, "While any price increase is to be welcomed, the Government has missed another opportunity to take decisive action on the problem of smoking and has only increased the price of cigarettes by a nominal amount. Increasing the price of cigarettes is one of the most effective ways of encouraging people to quit but I doubt you’ll find many smokers who consider a 10c increase to be the incentive they need to stop smoking. Our concern therefore, is that cigarette taxes are being viewed as a revenue-raiser despite the massive impact smoking has on Irish people’s health and productivity, costing the economy far more than it collects in taxes. This Budget has not acknowledged that there is a corollary between high priced cigarettes and lower health expenditure.”

Ms. O'Meara said that she is concerned that the decision not to increase the price of cigarettes to a level that would deter people from smoking could have been driven by a an argument purported by the tobacco industry that high price leads to smuggling.

"The tobacco industry clearly does not believe that price increases lead to smuggling as it raises the price of cigarettes even when there is no tax increase. We fully expect that the price of cigarettes will increase than more than 10c tonight because the tobacco industry will use the opportunity to increase their own profit margins, unnoticed by the consumer.

“The smuggling of cigarettes is a criminal issue which is robbing the Exchequer of much needed revenue as well as threatening health. It can and must be tackled at that level. Smuggling is not the result of high price. Some countries where legal cigarettes are low in price also have a very high smuggling rate. The Irish Cancer Society is pleased to hear that the Minister for Finance has introduced measures that will support the Revenue Commissioners efforts to irradiate the shadow economy but this can be done hand-in-hand with price increases," she said.

Smoking is the single biggest cause of preventable deaths in Ireland and must be tackled. Tobacco kills more people in Ireland than road accidents, suicides, drugs, farm accidents and AIDS put together. Smoking causes 30% of all cancers, including 95% of all lung cancers and causes three times the risk of heart attack compared to non-smokers. Overall 5,200 people die in Ireland every year from smoking-related illnesses including cancer, heart and respiratory disease.