Mixed reaction as cigarettes and fuel costs rise but alcohol escapes
The price of a packet of 20 cigarettes has gone up by 25c, while 5c was applied to the price of a litre of both petrol and diesel, the increases became effective at midnight.
The changes in the price of cigarettes and fuel will yield an extra 243 million in revenue, with over 190m hitting motorists.
The Office of Tobacco Control (OTC) said it would have preferred a higher increase on cigarettes to halt rising addiction numbers among children under 18 years.
“Increases in the real price of cigarettes are vital in helping to prevent addiction among children and in helping to reduce tobacco consumption among adults,” said the OTC’s Valerie Robinson. She said the 4.3% increase was nearly double the level of inflation.
“We welcome any increase in price above the rate of inflation, though clearly we would have preferred it to be higher,” she said.
The clear message to motorists faced with fuel increases was to “shop around for value”, Consumers’ Association chief executive Dermott Jewell said.
The Society for the Irish Motor Industry (SIMI) expressed disappointment at the fuel hikes. Chief executive Cyril McHugh said the industry was, however, pleased the minister did not increase an already crippling VRT (vehicle registration tax).
With new car sales down by more than 10,000, or 6%, during 2003, Mr McHugh said the introduction of a scrappage scheme would have brought in about 50m in extra revenue for Government. “We had made a Budget submission on a second scrappage scheme, as the previous initiative was very successful. We believe it was a missed opportunity for the Government,” he said.
Vintner organisations said they had hoped for a reduction in excise duties. Vintners’ Federation of Ireland (VFI) chief executive Tadg O’Sullivan said: “The VFI had campaigned for a reduction to bring Ireland’s excessive tax regime in line with other EU countries but no increase was certainly a step in the right direction.”
