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Smoking ban sees tobacco sales drop
29/06/2004 - 13:26:09
The sale of tobacco dropped following the introduction of the smoking-ban in the workplace, an international tobacco company revealed today.
The Gallagher Group said the amount of tobacco sold in Ireland in the first five months of this year had dropped by 9.3% due to inflation costs.
A statement from the firm said: “There are signs of some initial volume impact from the ban on smoking in the workplace, which came into force at the end of March.
“It is too early to assess the extent to which this reduction is due to short-term changes in trade buying patterns or to longer term changes in consumption.”
A trading update from the company put the 9.3% drop down to inflation duty increases which affected the affordability of products and hit border trade.
“The level of non-duty paid volume in the Republic of Ireland is expected to increase as a result of this taxation policy,” the Gallagher Group said.
At the end of last year the Government’s Budget pushed the price of a pack of cigarettes up by 25 cent, with measured increases on other tobacco products.
The increase in the price of 20 cigarettes meant a 4.3% rise, which was two points above the current rate of inflation of 2.3%.
The group, which produces cigarettes, cigar, pipe and handrolling tobacco products, said the amount of tobacco sold had increased by 6% during the first five months.
The trading update showed conditions in Europe have been difficult, with Austria, France and Germany experiencing declines due to disruption from increased taxation and cross-border trade.