EU - Minimum Price Ruling

Rabidlamb

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 ?.

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

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.

Le King

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

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.

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.:(

Mimikyu

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murphym7

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

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.

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?

Mimikyu

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murphym7

Captain Morgan wrote: »

This post has been deleted.

I'm getting out when they hit €20 :D

Stato x

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

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.

Le King

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

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.