Ireland Raises Tobacco Tax and Plans Higher E-Liquid Duty
Ireland increased the tax on a pack of 20 cigarettes by €1, including VAT, effective 7 October 2026, with proportional rises for other tobacco products. The government also plans to raise the E-liquid Products Tax from €0.50 to €0.70 per millilitre on 1 January 2027, a 40% increase. The tobacco measures are expected to generate about €63.1 million in a full year, plus €5.1 million in the remainder of 2026.
Ireland’s Budget 2027 includes two separate tobacco and vaping tax changes. The cigarette duty rise began on 7 October 2026, adding €1 to a 20-pack in the most common price bracket when fully passed through. Other tobacco products face proportional increases, with expected receipts of about €63.1 million over a full year and €5.1 million for the rest of 2026.
The e-liquid measure starts later. EPT, introduced on 1 November 2025 at €500 per litre, is set to rise to €0.70 per millilitre on 1 January 2027. It applies by volume to vaping liquids with or without nicotine, though licensed nicotine-replacement medicines are treated differently.
Higher tobacco and e-liquid taxes could affect smokers, vapers, and businesses across the supply chain. Some consumers may cut back or quit, while others may absorb higher costs or seek cheaper alternatives. Vapers buying larger volumes could face higher tax amounts, though final shop prices may vary. Retailers, importers, and manufacturers may face pricing and compliance adjustments. The measures may also raise government revenue, but their broader social impact could depend on how fully the taxes are passed through and how consumers respond.