Budget 2026 introduces a further increase in tobacco taxation, with the duty on a standard pack of 20 cigarettes rising by 50 cent. Minister for Finance Paschal Donohoe confirmed that excise on all other tobacco products will also increase on a proportional basis.
According to smokers’ advocacy group Forest, the latest rise will push the retail price of many popular cigarette brands close to €19 for the first time. The group argued that repeated tax increases risk driving more consumers towards illicit tobacco or cross-border purchases, and warned that higher duties could further impact legitimate Irish retailers.
A new tax of 50 cent per millilitre on nicotine-containing e-liquids for vaping products, first announced in September, will take effect from 1 November. This will add €1 to the cost of a typical 2ml disposable vape and double the usual price of a 10ml bottle of refill liquid from €5 to €10.
Excise duties on alcohol will remain unchanged in 2026. Industry groups had called for a reduction, noting that Ireland has among the highest alcohol duties in the EU. The Licensed Vintners Association described the decision as disappointing, arguing that current duty levels function less as a public health measure and more as a tax on socialising.
Public health organisations expressed concern for different reasons. Alcohol Action Ireland said the continued freeze marks the twelfth consecutive year in which alcohol duties have not been increased, reducing their real value over time and limiting their effectiveness in managing alcohol-related harm.
The Budget also includes a commitment to legislate for a dedicated pool betting duty. With the new Gambling Regulatory Authority expected to take on oversight in this area, the Department of Finance plans to consult with stakeholders to ensure the tax is structured appropriately. The Minister noted that a separate duty is required to prevent operators from restructuring their activities to avoid existing betting tax rules.
