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EU - Minimum Price Ruling

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  • 04-03-2010 11:18am
    #1
    Rabidlamb
    Banned (with Prison Access) Posts: 2,202 ✭✭✭


    As reported here:
    http://www.rte.ie/news/2010/0304/cigarettes.html


    Minimum cigarette prices infringes EU law
    Thursday, 4 March 2010 10:10

    The Court of Justice of the European Union has ruled that Irish legislation fixing a minimum retail price for cigarettes infringes EU law.

    Irish legislation breaches Directive 95/59, which has rules on excise duty affecting the consumption of tobacco products.

    The Court says imposing a minimum price on cigarettes can undermine competition by preventing some manufacturers taking advantage of lower cost manufacturing prices, so as to offer more attractive retail selling prices.
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    The Court says that while the directive ensures health protection, it does not prevent member states from combating smoking.


    So, does this mean Wingfield @ €5 a pack ????.
    What are the implications ?.


Comments

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    #2
    cork60
    Closed Accounts Posts: 11 ✭cork60


    Thats what it looks like. It sould be a complete scrappage of the rule and prices should then again drop but still will be expensive due to the excise duty. I could see a drop from now min price €7.75 to maybe €6 or just below.

    This is just my own view on the topic


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    #3
    Rabidlamb
    Banned (with Prison Access) Posts: 2,202 ✭✭✭Rabidlamb


    cork60 wrote: »
    Thats what it looks like. It sould be a complete scrappage of the rule and prices should then again drop but still will be expensive due to the excise duty. I could see a drop from now min price €7.75 to maybe €6 or just below.

    This is just my own view on the topic

    How much per pack do the government take ?.
    Have to allow a little bit of margin on top of that.


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    #4
    Le King
    Closed Accounts Posts: 5,092 ✭✭✭Le King


    So how much would a pack of my beloved JP Blue cost me now?


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    #5
    kev9100
    Registered Users Posts: 1,271 ✭✭✭kev9100


    cork60 wrote: »
    I could see a drop from now min price €7.75 to maybe €6 or just below.

    This is just my own view on the topic

    I doubt it will go down that much tbh. It will probably go down to something like 6.50.


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    #6
    lord lucan
    Registered Users Posts: 9,575 ✭✭✭lord lucan


    kev9100 wrote: »
    I doubt it will go down that much tbh. It will probably go down to something like 6.50.

    Yep,and then a hefty rise in duty at the next budget to increase the tax take and keep the anti-smoking brigade happy.:(


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    #7
    Mimikyu
    Registered Users Posts: 18,906 ✭✭✭✭Mimikyu


    This post has been deleted.


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    #8
    murphym7
    Registered Users Posts: 2,035 ✭✭✭murphym7


    Is there a timescale around when we might see any price drop?


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    #9
    lord lucan
    Registered Users Posts: 9,575 ✭✭✭lord lucan


    I must admit i used to think that a lot of this talk of black market fags was a bit of an urban myth. I'd never seen anyone flogging them around town or knew anyone who got them. But i was at a bus stop this morning and overheard 2 lads saying they were heading in to meet such-a-body to buy a 200 pack for €30. If it's as prevelant as is thought i can understand why manufacturers are worried and to a degree the government.

    As it is i reckon figures on smokers based on sales are most likely well wide of the mark. Many are heading to Spain to buy them,others the black market. This only serves to skew the figures and present a false image of whats really happening. Any move by the government to manipulate this ruling or hike the taxation on tobacco will only piss off more smokers and send them elsewhere in europe for their cigarettes,in turn reducing the tax going to the exchequer.


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    #10
    Herbal Deity
    Closed Accounts Posts: 1,397 ✭✭✭Herbal Deity


    'Price is well established as the most important measure in encouraging smokers to quit and discouraging young people from starting to smoke
    It is? :confused:


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    #11
    Mimikyu
    Registered Users Posts: 18,906 ✭✭✭✭Mimikyu


    This post has been deleted.


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    #12
    murphym7
    Registered Users Posts: 2,035 ✭✭✭murphym7


    Captain Morgan wrote: »
    This post has been deleted.

    I'm getting out when they hit €20 :D:D


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    #13
    Stato x
    Registered Users Posts: 31 ✭Stato x


    Its insane that the state takes so much tax from smokes.
    Ive heard 6.30 mentioned but can anyone confirm this?


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    #14
    lord lucan
    Registered Users Posts: 9,575 ✭✭✭lord lucan


    Stato x wrote: »
    Its insane that the state takes so much tax from smokes.
    Ive heard 6.30 mentioned but can anyone confirm this?

    I wouldn't imagine that's too far from the truth. The current price of 20 smokes(marlboro red) in spain is €3.80. That includes the spanish governments tax take on it so the pack probably costs about €2 ex-tax.

    It's a funny one for the government here. On the one hand they up the duty on the fags to keep the anti-smoking brigade happy but they really don't want loads of people giving up as it's such a handy form of tax for them.


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    #15
    Le King
    Closed Accounts Posts: 5,092 ✭✭✭Le King


    Any sort of time scale on when this will come into effect?


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    #16
    SpittinStuff
    Closed Accounts Posts: 35 ✭SpittinStuff


    The cancer brigade can kiss my smoky ass. Given the amount of revenue generated by us smokers, i'm sure our hospital beds and fee's are more than covered.

    The nation should thank us for our contributions.


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