Office of Tobacco Control calls for a minimum €1 increase on cigarettes

OTC also recommends a dedicated fund for health promotion and the reduction of the VAT rate for nicotine patches.

The Office of Tobacco Control (OTC) has today (29 September) called on the Minister for Finance, Brian Lenihan TD, to increase the cost of cigarettes by a minimum of €1.00, with a corresponding increase on roll-your-own tobacco. In their pre-budget submission the OTC also recommended a VAT reduction for NRT products and the creation of a dedicated fund for health promotion.

Éamonn Rossi, OTC Chief Executive, stated that a significant price increase, supported by well funded cessation services and information campaigns, as well as more affordable NRT products, will impact smoking prevalence significantly in years to come.

Mr Rossi stated "Some of the extra revenue generated by a €1.00 increase in tobacco excise duty, up to the value of five million euro, should be earmarked for investment in health promotion. Smoking cessation services and anti-smoking information campaigns should be financed from these funds with a particular emphasis on disadvantaged areas and youth."

"Coupled with price increases, the OTC recommends that the VAT rate on NRT products, such as nicotine patches, be reduced from 21% to 0%. Such a move will encourage those who may consider quitting, as a result of the tobacco price increase, to utilise patches in their quit attempts. Many smokers, particularly those on lower incomes who are not eligible for medical cards, and also young smokers, would be able to afford to use patches for longer, thereby increasing their chances of successfully stopping smoking."

In its submission, the OTC outlined overwhelming evidence to support the view that tax increases are the most effective and efficient instrument in reducing tobacco consumption.

"The potential to influence smoking behaviour through a price increase is considerable, especially in the younger age groups. Young people are traditionally resistant to public health messages and therefore the most influential factor in smoking behavioural change is price. An increase of a minimum of €1.00 will ensure that in real terms cigarettes will be far less affordable."

"Research for the Office carried out by TNS MRBI in August 2007, asked smokers to identify reasons why they would consider quitting smoking.  Some 44% of smokers said that a price increase/cost too much was one of the factors which would make them consider quitting, with previous reports indicating that young people are more sensitive to high tax increases than older people."

"Building on progress in recent years it is imperative that we continue to increase prices in order to deter young people from taking up smoking and to reduce the number premature deaths from tobacco. It is estimated that in excess of 95% of smokers who quit before the age of 30 years will avoid a tobacco related death."

Mr. Rossi concluded that increasing the cost of cigarette prices has strong public support.

"A 2006 TNS MRBI survey, for the OTC, demonstrates overwhelming public support for the introduction by Government of any measure to discourage young people from smoking. Almost two-thirds of smokers have tried to give up smoking and have failed. Against this back-drop of awareness of the difficulties in quitting smoking once addicted, 59% of people surveyed supported the doubling of cigarette prices overnight, including 4 out of 10 smokers."

For Further information, contact:
Pat Montague, Montague Communications, 01-8309300 or 087-2549123
Annmarie Brennan, Montague Communications, 01-8309300 or 087- 2605896