New licensing fees force Donegal shop to stop selling cigarettes

A Malin Head shop has stopped selling cigarettes and vapes after new annual licensing fees came into effect, with the owner warning the changes will have a significant impact on small rural businesses.

Teresa Mullin, owner of Mullin's Shop, said the family-run business could not justify paying €1,000 a year for a licence to sell tobacco products, as well as a further €800 annually to sell vapes.

"From August 1, we would have to pay €1,000 per year for a licence to sell cigarettes and a further €800 for vapes – the same as the busiest shop in the country."

Ms Mullin said she had raised her concerns with local politicians but felt the new licensing system unfairly treated small independent retailers in the same way as large supermarkets.

"I complained and spoke to local politicians, but it doesn't make any difference. That was the law. I know cigarettes aren't good for people, but nobody is asking them to smoke. At the same time, if someone comes into the shop for a packet of cigarettes they invariably buy a loaf or milk or something else."

Teresa, who lives in Moville, believes the flat-rate licence fee will be detrimental to many small rural businesses.

"I mean, it's ridiculous that I would have to pay the same licence as the big supermarket chains. All my cigarettes come through a reputable supplier, Shane McGlynn, so everything is fully accounted for.”

"It doesn't seem fair. If this was being introduced, it should have been on a sliding scale. It should have reflected the amount of money that I spend on cigarettes each year rather than the same thing for everybody across the board."

"Anything that stops someone coming into the shop and puts another business at an unfair advantage isn't great. There's no way that I could pay an extra €1,000 for a licence for cigarettes and then another €800 for vapes every year."

Ms Mullin pointed out that when the shop first began selling cigarettes, retailers only had to pay a once-off registration fee of €50.

She also revealed that the popular Malin Head shop had stopped selling vapes earlier this year after customers raised concerns.

"I stopped selling vapes in the springtime because some of my customers said there was cannabis oil in them and they didn't like the idea that we were selling them."

While the Malin Head woman acknowledged the health risks associated with smoking, Ms Mullin said she believed enforcement efforts should instead focus on illegal tobacco sales and preventing underage smoking.

"So many millions are spent in Ireland because of cancers, I can understand that, but I thought the first place you'd be going would be to stamp out the illegal selling of cigarettes and stamp out selling them to under-18s."

She said she continued selling cigarettes during the six-month transition period in the hope the licensing arrangements might change.

"This new law was introduced in February, and you had six months to get your licence and pay the €1,000. I said to myself, I'd sell them to the last minute because I was hoping something would change, but I kind of knew at the same time it wouldn't. It's another huge blow to small business."

Under the new retail licensing system, which came fully into effect on August 1, annual licences are now required for every premises selling tobacco products and nicotine-inhaling products.

Previously, retailers selling tobacco products only had to register and pay a once-off fee of €50, while there was no licensing requirement for businesses selling nicotine-inhaling products.

The annual licence fee has been set at €1,000 for tobacco products and €800 for nicotine-inhaling products for each premises.

Businesses found to be selling tobacco or nicotine-inhaling products without a valid licence can face penalties, including fines of up to €4,000 or possible imprisonment.