The High Court has granted leave for the Convenience Stores & Newsagents Association (CSNA) to proceed with a judicial review of the “punitive” fees in the planned tobacco and nicotine product licensing system set to come into operation in February, 2026.
The revamped licensing system, which will set an annual fee of €1,000 for the sale of tobacco products and €800 for the sale of nicotine inhaling products, is an increase from the existing once-off €50 fee.
“These charges aren’t just punitive – they unfairly target small retailers already facing soaring costs and regulatory pressure,” said Vincent Jennings, chief executive of the CSNA.
The association, he said, has sought to engage with the Government on the matter to ensure a “fair, transparent and workable” licensing system.
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“We believe the Minister for Health has overreached by imposing excessive and unjustified licensing fees without proper consultation,” he said.
The licenses are set to be issued by the National Environmental Health Service, a division of the Health Service Executive (HSE), and separate licenses will be required for the sale of tobacco and nicotine inhaling products at each individual location.
The CSNA chief said that the cost of the licensing fees would be borne across other products or absorbed by small retailers “already struggling” with economic and cost of living pressures due to legislation around the pricing of tobacco products.
The association said it was not consulted on the new licensing system, nor was it invited to present to the Joint Oireachtas Committee on Health.
The judicial review is expected to be heard in the High Court in the final quarter of 2025. The review will be based on the CSNA’s argument in their High Court submission that the then minister for health Stephen Donnelly acted outside of his powers in enacting the system for the “unlawful purpose of imposing an additional tax or duty upon the sale of a lawful product by law abiding retailers in order to disincentivise its consumption.”
“This development means the CSNA will now have the opportunity to contest the legality and fairness of the new fees in court – a critical step in standing up for its members and challenging what it believes are excessive and unjustified charges,” said Mr Jennings.
The licensing system, which is set to apply to more than 12,500 outlets, could generate up to €22 million in revenue for the Government, the CSNA says.
In January 2025, upon announcing the system, Mr Donnelly said he hoped the introduction of the annual licensing fee would “act as a disincentive for some retailers to stock these products at all as it is the government’s objective to eliminate tobacco use”.
The retail group believes this “irrational” desire is not backed up by the legislation underpinning the licensing fee and “will not reduce the level of consumption” as cost increases will not be passed on to consumers.
