Call for tax rise and below-cost sales ban after cigarette ruling

ANTI-smoking groups say the Government must increase taxes on cigarettes immediately and ban below-cost selling to prevent prices falling, following a ruling by the European Court of Justice.

For 30 years, Ireland has insisted cigarette companies must get a minimum price for their products, but the court says this is against EU competition rules. Currently, companies get a guaranteed €1.05 and €1.21 per pack of 20 cigarettes, making Ireland one of their most lucrative markets.

The court said the companies must be allowed to set their own price, and that the Government is free to add whatever level of taxes it wants.