Ireland has raised excise duties on cigarettes and vaping products in a budget measure that pushes a pack of 20 cigarettes past the €20 mark, according to reporting by rte.ie. Minister for Finance Simon Harris announced a €1 increase on a standard pack of 20 cigarettes alongside a pro-rata adjustment for other tobacco items.
Excise Duty Hikes Push Cigarette Prices Past €20
The price adjustments took effect from midnight following the budget announcement, breaking the barrier of €1 per cigarette. Standard increases in recent budgets typically hovered around 50 cents. Other tobacco products face proportionate increases, while e-liquid products face an additional levy of 20 cents per milliliter. The E-liquid Products Tax, which originally launched on November 1, 2025, already levies an initial duty alongside a 23% VAT, leaving standard 2-ml disposable vapes and 10-ml refillable bottles facing steeper retail costs.
“Smoking continues to kill so many Irish people every year,” Minister Harris said, defending the policy as a public health measure aimed at discouraging younger demographics from taking up the habit. Echoing historical shifts in social policy, an essay in echolive.ie noted that smoking prevalence among Irish adults now stands at 13%, translating to roughly half a million daily smokers, with male usage reaching one in five.
Retail groups argue the tax changes penalize law-abiding shop owners while fueling illicit trade. Benny Gilsenan, a spokesperson for Retailers Against Smuggling (RAS), stated that more than half of tobacco consumers already source products outside Ireland. “Retailers are already struggling with the soaring cost of running a business,” Gilsenan said, adding that the Government fails to tackle the black market.
Industry body Responsible Vaping Ireland (RVI) warned that the 20-cent per milliliter e-liquid tax exacerbates pressures on small shop owners facing surging wages, energy bills, and licensing fees. An RVI spokesperson noted that more than 23,000 adults have quit smoking using regulated vaping alternatives, emphasizing that higher levies make cessation tools less accessible.
Cigarette and vape tax hikes increase retail prices
- Midnight Effective Date: The €1 cigarette tax hike and 20-cent vape duty increase took effect immediately at midnight following the budget announcement.
- Cumulative Price Growth: A pack of 20 cigarettes now costs over €20, with 83% of the cost going into state coffers, according to figures cited by echolive.ie.
- Vaping Duty Context: The E-liquid Products Tax applies across all inhalation liquids, adding to existing baseline VAT rates established in late 2025.
- Market Share Concerns: Retail advocacy groups report that over 50% of tobacco users already purchase products outside Ireland.
Frequently Asked Questions About the Tobacco and Vape Tax Increases
What proportion of the cost of a cigarette pack goes to the state?
State coffers collect approximately 83% of the cost of a packet of cigarettes following the latest budget adjustments, as detailed by echolive.ie.
How do disposable vapes factor into the new e-liquid tax?
Standard disposable vapes typically contain 2 ml of e-liquid, meaning the 20-cent per milliliter increase adds 40 cents to the current retail price of each device.
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