Heart Foundation: Govt 'duped by tobacco industry'

The Irish Heart Foundation has said that the Government has missed an opportunity with its 25 cent increase on tobacco in today's Budget.

A pack of 20 and other tobacco products will jump by 25 cent from midnight tonight.

Michael O'Shea, Chief Executive of the IHF said that he is "extremely disappointed" that the Government did not increase duty on tobacco further.

Mr O'Shea said: "I am extremely disappointed that once again the Government has listened to the vested interest of the tobacco lobby and missed a genuine opportunity to put the health of our nation first and raise significant revenue to benefit our struggling economy.

He said the increase will serve only to raise some extra revenue and will have no health impact unless a portion of it is invested in measures to tackle tobacco smuggling and smoking cessation services.

Mr O'Shea said: "Around 5,700 people a year die here from tobacco-related illness - the equivalent of a jumbo jet crash every month on Irish soil. But the State has never used tax increases - which are the biggest single weapon to reduce smoking rates - to properly tackle the health catastrophe caused by cigarettes.

"The fact is that a €1 increase per pack would have resulted in extra revenue benefits of at least €96m that would have paid for tobacco control measures and spared many families from the pain of cuts that didn’t have to be imposed."

He said such a rise would also have directly resulted in 30,000 people giving up smoking and therefore have saved lives.

Mr O'Shea said: "By failing to impose an increase of this magnitude, the Government is continuing to be duped by a tobacco industry that continually argues at Budget time that tax increases fuel smuggling and when it is successful puts up its own prices because it doesn’t really believe its own argument."

However smokers’ lobby group Forest Eireann has criticised the decision to raise tobacco duty.

“Ireland is already the most expensive place in the EU to buy tobacco,” said spokesman John Mallon.

“This will only encourage more smuggling and organised crime while hurting retailers and law-abiding smokers."