Vaping is set to become more expensive from the middle of next year with the introduction of a new tax on e-cigarettes.
Meanwhile, a pack of 20 cigarettes will cost an extra €1 from Wednesday after a further increase in excise duty.
The new tax on e-liquids in electronic vaping devices is the latest in a series of measures aimed at discouraging the use of vapes, particularly among young people.
Minister for Finance Jack Chambers told the Dáil he was introducing the tax “on public health grounds as there has been a significant rise in their use”.
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It will mean that the price of a typical disposable vape costing €8 will increase to €9.23 including VAT.
Mr Chambers said: “Due to the operational and administrative challenges associated with this measure it will not commence until the middle of next year and therefore will be subject to a commencement order.”
The new tax is expected to raise €7 million next year and €17 million in a full year.
A ban on the sale of vaping products and e-cigarettes to people under 18 years of age previously came into effect last year.
The Government is also working on legislation to ban the sale of disposable vapes on environmental and public health grounds.
This new law is also expected to prohibit the sale of e-liquid flavours that appeal to children and there is to be a ban on point-of-sale advertising displays in shops other than specialised outlets that only sell vapes.
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Mr Chambers also announced the €1 rise in excise duty on a pack of 20 cigarettes saying it “supports public health policy to reduce smoking levels in Irish society”.
It will mean the price rises for the most popular brands to €18.05 and there will be a pro-rata increase on other tobacco products.
The financial resolution in the Dáil on Tuesday night means that the excise increase will take effect from Wednesday.
The Irish Heart Foundation has welcomed the new e-cigarette tax and increase in the cost of cigarettes.
Chris Macey, the charity’s director of advocacy, said it is “a vital deterrent for young people to take up vaping and smoking and these measures will have a significant long-term health benefit”.
He added: “Specifically targeting e-cigarettes is particularly important given the explosion of youth vaping in Ireland and fears they represent a gateway into smoking for a new generation.”
He said it is “unfortunate” that the tax will not be introduced until mid-2025 but the rate selected can have “a significant impact on youth vaping rates without deterring people using e-cigarettes to quit smoking”.
Lobbying organisation Respect Vaping warned that the new tax on e-cigarettes might push vapers back to tobacco or to buy them from unregulated sources.
