The Budget and Profiteering

Abdiel

Was in a pub for a while earlier. Bought 20 smokes on the way in for €6.50 - on the way out just over two hours later, the price had suddenly jumped to €7. There was definitely no stock replenishment, so I am just wondering how they can possibly justify charging an extra 50 cents for stock they obviously got at the old price???

The pub is question was the Beaumont House, which just happens to be owned by one of Bertie's personal "contributors" so I never expect they will face any punishment for quite blatant profiteering.

There was a time when after the budget cigarette boxes would have something which identified it as new stock - this is a trend which seems to have fallen by the wayside, in preference of allowing this blatant profiteering.

Just dumbfounded by the whole thing to be honest.

Yea I know, I should give up, but fup it, I am an adult who chooses to smoke. Does that justify being victimised by every money hungry shop owner...

senordingdong

Good point, all I can say is what we were all told and that is that we knew the price was going up from midnight last night.

Abdiel

Traditionally that is meant on a wholesale basis - cigarettes sold by wholesalers from last night collect an extra 50 cents, but when a shop is clearly selling the same stock and the extra money is obviously going into the pocket of the owner - how does that benefit anybody other than the owner of the pub???

As I said there was a time when cigarettes sold wholesale after the budget had a specific identifier to let customers know they were buying new stock with new tax rates.

Well done Bertie, another few bucks for your mate who owns the Beaumont House - perhaps that's how he's been repaying his debts.

MooseJam

dude, you smoked 20 cigarettes in 2 hours ?

yea the same thing happened to me, my response was to stuff two smarties bars and a packet of rolo into my pockets, that'll show the robbin bastids

Abdiel

didnt smoke 20, only 3 actually, just though I would get an extra 20 as I was surprised the pub in question werent already charging 7 euros! Told them to fup off when they tried to charge 7 anyway.

Rabies

Abdiel wrote:

Traditionally that is meant on a wholesale basis - cigarettes sold by wholesalers from last night collect an extra 50 cents, but when a shop is clearly selling the same stock and the extra money is obviously going into the pocket of the owner - how does that benefit anybody other than the owner of the pub???

The same thing happens with the oil prices. It is not only Ireland this happens in.

The Hill Billy

It is not profiteering nor does it have anything to do with wholesaling cigarettes. The extra 50c is tax.

The budget stated that it was to be applied from midnight on Wednesday. The publican was merely doing as he was told by Biffo Cowen. The 50c goes straight to the government coffers & not into the publican's pocket. (Well, it's not meant to.)

Padraig Mor

Hill Billy wrote:

It is not profiteering nor does it have anything to do with wholesaling cigarettes. The extra 50c is tax.

The budget stated that it was to be applied from midnight on Wednesday. The publican was merely doing as he was told by Biffo Cowen. The 50c goes straight to the government coffers & not into the publican's pocket. (Well, it's not meant to.)

Presumably the pub in question had ALREADY bought the fags - i.e. at the old price, with the 'old' tax. Their price shouldn't go up until they get in a new batch of cigarettes at the 'new' price. They were ripping people off. Businesses are known for profiteering for this. Tesco were exposed a few years ago by the newspapers. Everyone knew that alcohol duty was going to be going up in that particular budget and Tesco duly raised their prices a few days after the budget - but the newspaper found that they had bought about six months worth of booze at the older, lower price which they were now flogging at the higher price and pocketing the difference!

Cowen raised excise duty which AFAIK is charged on goods once they enter the country - would I be right in thinking that even the cigarettes in the wholesalers for the next few days/weeks will be sold to retailers at the old price?