Plans for a 200-fold rise in the cost of the licence fee to sell tobacco could see many outlets choose not to offer the products and drive more people to the black market, it has been claimed.
The Irish Cigarette Machine Operators Association yesterday called its members to an EGM to discuss the proposed legislation which, it claimed, will severely impact the vending industry, which employs 145 people and is worth over €175m to the economy.
“We’re very concerned about several proposed Department of Health measures that have the potential to decimate our industry in a very short space of time,” said ICMOA spokesman Cormac Dunn.
He said the EGM was called in light of reports that the retail licence fee will be increased from a once-off €50 to €500 per outlet per year, in order to reach the Government’s target of €5m per year. He said the fee could rise to up to €1,000 if people withdrew from the industry, as the target will have to be achieved.
He said many venues, including large pubs, only make €400 to €500 a year from the vending machines in their premises and, if forced to pay such a large fee, many would simply stop selling tobacco.
Source: Stephen Rogers, Irish Examiner, 26/04/14