Dáil Éireann Debate, Thursday - 24 October 2024
138. Deputy Colm Brophy asked the Minister for Finance the revenue generated by increasing the domestic tax on e-cigarettes to all e-liquids at a rate of an extra 50c per ml of e-liquid per year, reaching €3 per year by 2030. [43745/24]
View answerAs I announced on Budget Day I am introducing a domestic tax on e-cigarettes on public health grounds. The tax will apply to all e-liquids at a rate of 50c per ml of e-liquid. Due to the operational and administrative challenges associated with this measure it will not commence until the middle of next year.
While it is difficult to determine the exact yield the e-liquid products tax will generate, based on the e-cigarette market size in Ireland and the prevalence of e-cigarette products, it is estimated that a tax of 50 cent per millilitre of e-liquid will yield approximately €17 million in a full year.
In light of the fact that the tax base for e-liquids has not yet been established it is not possible to estimate the impact of potential tax rate changes on future yields.
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