Ireland Cigarette Prices Hit €20 in Budget 2027 Tax Hike
The Irish Dáil has approved a €1 excise duty increase in Budget 2027, pushing the price of a standard 20-pack of cigarettes to €20.15. The vote passed 100 to 48, making Ireland the most expensive tobacco market in Europe and the second highest globally behind Australia, while sparking debate over tax reliance and smuggling.
Tax Revenue Projections vs. Public Health Targets
Introduced by Minister for Further and Higher Education James Lawless, the tobacco price increase is projected to yield €63.1 million in a full year and €5 million for the remainder of 2026. Roll-your-own tobacco pouches also increased by €1.39, bringing retail prices to €29.72.
Defending the measure, Lawless cited long-term declines in smoking rates:
“In 2007, 29 per cent of people were daily smokers… By contrast, in 2025 that figure is reduced to 17 per cent.”
However, Labour TD Duncan Smith called the policy an “abject failure,” pointing out that the Tobacco-Free Ireland strategy launched in 2013 set a target of 5% smoking prevalence by 2025:
“If you’re not backing up the taxation side with a robust public health approach, you’re going to continue to fail… successive Governments in this country have abandoned the robust approach in favour of this old reliable.”
Black Market Expansion and Economic Strain
Lawmakers also raised concerns about the financial impact on low-income smokers and the growth of illicit trade networks. Sinn Féin TD Thomas Gould stated that tax-only strategies yield diminishing returns, noting that illicit tobacco cost the Revenue Commissioners more than €800 million last year.
Kerry TD Michael Healy-Rae stated the price increase will not change smoker behavior but will force low-income consumers to endure added financial strain. Independent TD Paul Gogarty noted that healthcare costs from smoking continue to exceed excise revenues while calling for tighter controls on unregulated synthetic vaping products.
Retail Price and Tax Summary
| Product / Market | New Retail Price | Tax / Market Details |
|---|---|---|
| Ireland (20-Pack Cigarettes) | €20.15 | €16.03 tax take (Approx. 80% of price) |
| Ireland (Roll-Your-Own Pouch) | €29.72 | Increased by €1.39 |
| Australia (20-Pack Cigarettes) | €21.02 | Highest retail price globally |
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