Key Points
- JTI has proposed a €0.25 increase in tax on a pack of 20 cigarettes for Budget 2027.
- Ireland has raised cigarette tax by at least €0.50 in each of the past 10 budgets; the last three increases were €0.75, €1 and €0.50.
- JTI estimates a €0.25 increase could generate €45 million in additional revenue, compared with Revenue's existing full-year estimate of about €18 million.
- JTI says 39.5% of tobacco products consumed in Ireland in 2025 generated no Irish tax revenue, up from 22% in 2021.
2Firsts
September 18, 2026
Japan Tobacco International's Irish business has proposed a €0.25 increase in Tobacco Products Tax on a pack of 20 cigarettes in its pre-Budget 2027 submission, The Irish Times reported on September 17.
The proposed increase is below the level applied in recent Irish budgets. According to The Irish Times, every one of the past 10 budgets has included an increase of at least €0.50 on a pack of 20 cigarettes.
JTI said a €0.25 increase could raise Exchequer revenue while limiting further movement by consumers toward illicit and non-Irish-tax-paid tobacco. The company estimates the proposal would generate an additional €45 million.
JTI's €45 Million Estimate Exceeds Revenue's Existing Projection
Revenue's post-Budget 2026 Ready Reckoner estimates that a €0.25 increase on a pack of 20 cigarettes, including pro-rata increases on other tobacco products, would generate about €18 million in a full year.
The same Revenue model estimates approximately €35 million from a €0.50 increase and €69 million from a €1 increase. The figures include VAT.
Revenue's €18 million estimate is below the €45 million figure cited by JTI in its latest submission.
Publicly available material does not show that the two estimates use identical assumptions on volumes, consumer behaviour or market changes, and the figures therefore should not be treated as directly comparable outputs from the same model.
JTI described the €0.25 increase as its preferred option for delivering additional Exchequer revenue while limiting displacement toward illicit supply.
Recent Cigarette Tax Increases Were €0.75, €1 and €0.50
Ireland has repeatedly increased cigarette taxes in recent budgets.
Budget 2024 raised excise on a pack of 20 cigarettes by €0.75, with pro-rata increases on other tobacco products.
Budget 2025 increased the tax by a further €1 per pack, taking the most popular price category to €18.05.
Budget 2026 added another €0.50 per pack, again with corresponding increases for other tobacco products.
JTI's proposed €0.25 increase is one-third of the Budget 2024 rise, one-quarter of the Budget 2025 rise and half of the Budget 2026 increase.
JTI Says 39.5% of Tobacco Consumption Generated No Irish Tax
JTI said 39.5% of tobacco products consumed in Ireland in 2025 generated no Irish tax revenue, up from 22% in 2021.
The company estimates the resulting loss in excise and VAT at more than €1 billion.
The 39.5% figure is not equivalent to an illicit-market share. The Irish Times noted that the total includes tobacco legally brought into Ireland from abroad, products taxed in other jurisdictions or purchased duty-free, as well as illicit and counterfeit tobacco.
Separate Revenue data also point to a substantial volume of non-Irish-tax-paid tobacco consumption. Its latest Tobacco Consumption Survey found that more than one-third of cigarettes and almost half of roll-your-own tobacco packs consumed in Ireland had not been taxed in Ireland.
Revenue subsequently tightened rules for tobacco brought into Ireland from other EU member states from December 9, 2025. Current reference quantities include 800 cigarettes, 400 cigarillos, 200 cigars and one kilogram of other tobacco products. Quantities above those levels can be treated as evidence that the products are not for personal use.
Revenue's survey and JTI's 39.5% figure use different product and statistical definitions and are not directly interchangeable.
Ireland Has Also Extended Excise to E-Liquids
Ireland has also expanded excise taxation beyond conventional tobacco.
The E-liquid Products Tax took effect on November 1, 2025, applying to both nicotine-containing and nicotine-free e-liquids at €500 per litre, equivalent to €0.50 per millilitre.
The tax applies on the first supply of an e-liquid product by a business in Ireland, with the liable supplier responsible for registration, filing and payment.
The publicly available Irish Times report on JTI's Budget 2027 submission focuses on conventional tobacco taxation and does not disclose whether the company made separate proposals covering e-liquids, heated tobacco products or nicotine pouches.
JTI Ireland distributes cigarette brands including Benson & Hedges, Silk Cut and Camel.
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Cover Image: The Irish Times
