Ireland Vape Tax Expected in Budget 2025 as Talks Continue

Finance Minister Chambers has expressed hope to reveal details of a vape tax in the upcoming Budget, set for unveiling on Tuesday, as budget talks continue into the weekend. The Budget 2025 will also include a 1pc cut to USC and a €250 energy credit.

Former Finance Minister Michael McGrath first flagged a tax on vapes in his budget speech last year. Speaking at a press briefing ahead of the publication of the white paper outlining the public finances before new budget measures, Minister Chambers said important work on the vape tax has been ongoing.

“It is my intention to try and advance that through the budget process. There’s been extensive work ongoing between my own department and the revenue commissioners on how that can be commenced at a retail level. So I’ll be able to set out details of that hopefully, on budget day,” Minister Chambers said. While not confirming the system by which the tax would be imposed, he emphasized that the advancement of the proposals was in the interest of public health.

Cost of Living Package and Public Transport Fares

Minister Chambers said while there will be a cost of living package in the upcoming budget, it would not match the size of the package brought forward last year. “I don’t anticipate it to be at the same scale as last year. Inflation is at just over 1pc but we know that there is still significant impact on prices from the underlying inflation that was in our economy,” Minister Chambers said. “And in fact, it has moderated which means prices aren’t continuing to rise, but there’s still high prices in our economy, which we have to reflect upon,” he added.

It is understood that over €100m will go towards retaining the reduced fares on public transport in Budget 2025. The reduced fares, first introduced during the covid pandemic and kept during the cost of living crisis, are now expected to become part of core spending, making the price reductions permanent.

Also Read:
Ireland Fines Selling Vapes at Children’s Events €2,000

Funding for MetroLink, Justice Sector, and Education

With new Project Director Sean Sweeney on board to head up MetroLink, €1m will be allocated towards the project in the upcoming budget. Earlier this year, it was revealed that Mr Sweeney, who is from New Zealand, will receive a salary of €550,000 a year to lead the project.

Justice Minister Helen McEntee has secured significant funding increases for the justice sector, targeting areas such as processing international protection cases, expanding prison capacity, tackling domestic, sexual and gender based violence, Garda recruitment, and equipment for public order.

In the area of education, the free schoolbook scheme is expected to be extended to senior cycle, a key priority for Education Minister Norma Foley, who is also pushing for an additional 1,500 SNAs.

News Source: Tax on vapes expected to be confirmed on Budget Day, as talks continue into weekend

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.