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6.1 News: George Lee, Economics Editor, reports on the new estimates from the Department of Finance showing that tobacco tax will come in €128m below the target set in the Budget
Consumption of cigarettes in Ireland has fallen by 17.6% this year according to new estimates from the Department of Finance.
The department also estimates that as a result, the Government's tax take from cigarette smokers has fallen this year for the first time ever. It will come in €128m below the target set in the Budget.
The Minister for Finance, Brian Cowen, said the large drop in cigarette consumption is evidence that the Government's 'brave' decision on the smoking ban was a good public health initiative.
However, Mr Cowen said he has not ruled out increasing excise duties on cigarettes again in next Wednesday's Budget.
