Leitrim businesses facing pressure from new tobacco and vape licence fees

Concerns have been raised over whether a new annual licence fee for shops selling tobacco and vape products is unfairly penalising small, rural businesses in Leitrim.

Cllr Irene Guckian-Rabbitte put forward a motion calling on Leitrim County Council to write to the HSE regarding a new tax introduced in February 2026, which requires businesses to pay an annual licence fee of €1,000 to sell tobacco products and €800 to sell vape products.

She called for the HSE to clarify why the licence was introduced, where the money collected through the fees is being spent, and whether the charges could be reassessed to take account of the takings of the businesses concerned.

“This issue has been brought to my attention a number of times by local business people. Leitrim is a fairly rural county and local businesses usually consist of family run shops, pubs and other centres and are very important to the area. A tax like this puts enormous pressure on these family run businesses,” said Cllr Guckian-Rabbitte.

She argued that tobacco products carry small profit margins and that smaller shops cannot absorb an additional annual cost of €800 to €1,000 as easily as larger supermarket chains.

“It’s not that I condone vaping or smoking, adults are able to make up their own minds. Keeping jobs is very important in this county,” she said, referring to the recent closure of Centra in Rooskey, which she said had a “huge effect” on the area.

“I am very concerned that this particular tax is taking a real swipe at businesses. It mightn’t seem like a big deal but when you’re talking to people who run small businesses you can see the dangers that are lurking,” she added.

Cllr Ita Reynolds-Flynn expressed some support for the motion, acknowledging the concerns facing small businesses while highlighting the public health responsibility to discourage smoking and vaping, even if doing so creates difficulties for retailers.

“There’s no allowance for the fact that smaller businesses can’t absorb the bigger costs,” added Cllr Guckian-Rabbitte.

Cllr Pádraig Fallon seconded the motion, raising concerns that the tax could lead to an increase in the underground sale of tobacco and vape products.

“It’s an individual’s choice whether they want to smoke or not. The last thing we want to see is more of these products sold underground and people not knowing what’s in it,” he said.