Dublin: The government is expected to increase the price of a packet of cigarettes to €20 in the upcoming Budget 2027, continuing its policy of raising tobacco taxes to discourage smoking.
Over the past five years, excise duty on tobacco has been increased annually, with a packet of 20 cigarettes currently costing around €19.50. The government also introduced a tax on vaping products last year. However, no further increase in vape duties is expected until the European Commission finalises its proposed EU-wide framework for taxing e-cigarettes.
Meanwhile, alcohol excise duties are expected to remain unchanged. The move comes as a recent report by the Drinks Industry Group of Ireland found that alcohol consumption in Ireland has fallen by 35% over the past 25 years, bringing consumption levels broadly in line with the European average.
The industry group has called for a 10% reduction in alcohol excise duty in Budget 2027 to support pubs and the hospitality sector, but current indications suggest the government is unlikely to alter alcohol taxes in this year’s budget.
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