Up in smoke

IRISH smokers bought 55 million fewer packs of 20 this year - mostly as a result of the smoking ban.

Department of Finance figures show 1.1 billion fewer cigarettes were sold this year, costing the Exchequer €128m in lost excise duty.

The Taxation Statistics Budget 2005 document released by the Department of Finance, in advance of next week's budget, estimates that sales of cigarettes will be down by 17.6% by the end of the year.

Despite their declining numbers, smokers still coughed up €1bn in excise duties last year. And they could be paying more next year. Yesterday, Finance Minister Brian Cowen refused to rule out an increase in cigarette prices in next Wednesday's budget.

The department's figures show alcohol sales have not been adversely impacted by the smoking ban. In fact, drink sales are up by volume: spirits up 4%, wine up 10%, cider up 2% and beer down just 1%.

Enterprise, Trade and Employment Minister Mícheál Martin, who as Health Minister introduced the smoking ban on March 29, said last night that any reduction in smoking was to be welcomed.

"The fall in cigarette sales is a direct result of the Smoking Quitline, the advertising campaign that smoking can damage your health and indirectly to the smoking ban," he added.

The fall in smoking will result in a €128m drop (16.2%) in excise taxes from cigarettes. The department calculates that this will be the equivalent to a drop in sales of 55 million packs of 20 cigarettes, or 1.1 billion cigarettes over the year.

The drop in excise revenue from cigarettes will be more than off-set by the increases in the sale by volume of spirits, wine, cider, and petrol, up 3%.

All excise duties will bring in €5.046bn this year, €13.9m above budget, despite the €128m drop in the cigarette tax take.

Excise revenue from alcohol is expected to be €23.4m ahead of 2003 with the take from spirits up €15.4m, wine up €1.2m, cider up €1.4m and beer up €5.4m.

The take from Vehicle Registration Tax (VRT) will increase on the back of a 6.05% rise in total new car registrations and a 5.4% hike in car prices this year. An extra €76.3m will be collected in VRT to bring the total tax collected to €941.9m.

The figures indicate a 19.4% increase in betting in 2004, according to receipts to the end of October.

No butts

Q: If 55 million packs of 20 were not sold last year, and the average smoker smokes 7 packs of 20 a week equal to 364 packs of 20 a year, how many less smokers might there be now compared to last year?

A: 151,098 average smokers.