Excise and miscellaneous announcements

The main measures announced were the now usual annual Budgetary increases in excise duty for tobacco products, and the expected announcement of a new duty on e-cigarettes and vaping.  The bank levy was also extended to 2025 

Tobacco excise 

Excise duty on tobacco products is being increased by €1, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category, with pro rata increases being made on other tobacco products.  

Normally such a change would take effect from midnight tonight however the Budget 2025 Financial Resolutions which would confirm this have not yet been published. 

E-cigarettes 

Budget 2024 set out the Government’s intention to introduce a domestic tax on e-cigarettes and vaping in this year’s Budget. The Budget confirmed today that excise duty on e-cigarettes is being introduced and will apply to all e-liquids at a rate of 50 cents per ml of e-liquid. According to the Minister for Finance’s speech, a typical disposable vape contains 2ml of e-liquid, and costs in the region of €8. This new tax will bring the price of such a product to €9.23 including VAT.  

Stressing once again the operational and administrative challenges associated with this new tax, it will not commence until mid-2025 and therefore will be subject to a commencement order. 

Small producers of cider and perry 

The excise relief for independent small producers of cider and perry is being extended to cover what is known as other fermented beverages, which includes products such as mead and wines other than grape wine such as elderberry wine, strawberry wine etc., as well as to higher strength cider and perry. 

Bank levy 

A revised bank levy was introduced for 2024, and this is now being extended for one further year to apply in 2025. This applies to those banks that received financial assistance from the State during the banking crisis, (AIB, EBS, Bank of Ireland and PTSB). It is expected that estimate revenue of €200 million will be collected in 2025. 

Compliance 

Revenue will conduct a range of targeted compliance management activities in 2025. It is expected that additional Exchequer receipts will arise from increased taxpayer compliance in a range of economic areas. The yield form this is estimated to be €70 million.