The 50 pence increase in excise duties on a packet of 20 cigarettes announced in yesterday's Budget would help motivate smokers to quit and discourage young people from starting to smoke, anti-tobacco campaigners predicted last night.
However, the tobacco industry warned the increase would not reduce consumption, but would result in an unprecedented level of cigarette smuggling.
The increase meant tobacco taxes here were now the second-highest in the EU and the third-highest in the world, the Irish Tobacco Manufacturers' Advisory Committee (ITMAC) said.
The British government had tried to reduce tobacco consumption by significantly increasing prices, the group said. But while consumption remained unaffected, legal sales in the UK had been displaced by low-priced, black-market products from states with significantly lower tobacco taxes. Twenty per cent of the cigarette market in Britain was now served by the black market, with the loss to the Exchequer of £3 billion annually, the group added. Yesterday's decision created the conditions for a similar situation to develop in Ireland, ITMAC said.
Dr Luke Clancy, chairman of ASH Ireland - Action on Smoking and Health - said 6,000 people died in Ireland each year as a result of tobacco-related illness, and the 50 pence increase would play a major role in reducing the number of young people taking up the habit.
International research showed price was a major factor in assisting smokers to quit and in encouraging young people not to start smoking.
The Irish Cancer Society said a survey it conducted earlier this year found that if the price of a packet of 20 cigarettes was increased to £4 over half of those surveyed would consider cutting down smoking, while a third would consider stopping altogether.