Tobacco tax may rise after ruling

THE Government may have to hike taxes on cigarettes and tobacco following a finding by a senior legal expert that their policies are against EU rules.

For over 20 years, vendors here haven’t been able to sell cigarettes for less than a minimum price – this has been set at 3% below a nationwide average sale price.

The European Commission says this contravenes the EU’s rules on competition in the single internal market and has taken the State to court.