The Convenience Stores & Newsagents Association (CSNA) has been granted leave by the High Court to pursue a Judicial Review against the government's increase in tobacco licensing fees.

The new fee of €1,800 per store represent a 3,500% increase from the previous rate of €50 per store and is set to generate more than €22m in annual revenue from small retailers.

CSNA believe the hike is unjustified, that it has been introduced without proper consultation, and that it will devastate smaller retailers "already grappling with soaring costs and regulatory pressures."

A CSNA survey found that 100% of member retailers believe cost increases are affecting their business, 96% feel they were not consulted about the fees, and the same proportion believe they are on unfair.

“We believe the Minister for Health has overreached by imposing excessive and unjustified licensing fees without proper consultation,” said Vincent Jennings, CEO of the CSNA.

“These charges aren’t just punitive – they unfairly target small retailers already facing soaring costs and regulatory pressure.

"From day one, we’ve sought engagement – not to oppose licensing – but to ensure it is fair, transparent and workable.”

CSNA complained to the Office of the Ombudsman after it was not invited to present its case when the bill passed to the committee stage despite its written submissions to the Joint Oireachtas Committee on Health requesting pre-legislative input.

The group also had multiple formal requests for meetings with Stephen Donnelly and Colm Burke, the then-Minister for Health and Minister of State in the Department of Health, either ignored or denied.

A government press release announcing the implementation of the fee increases in January stated that it might “dissuade” some retailers from applying.

Beyond feeling "ignored and excluded" in the decision to raise fees, retailers are "being punished for selling legal products," CSNA said.

Tobacco excise and product tax receipts totalled €1.047bn in 2023 and the illicit tobacco trade now accounts for 34% of all sales, and prices continue to rise.

"The fees are arbitrary and lack transparency. Framed as 'setup costs,' the new charges are ongoing, with no explanation of how figures were calculated or how long they’ll remain in force," CSNA continued.

"A dangerous precedent is being set. If left unchallenged, this could pave the way for more arbitrary, excessive charges on small businesses across other sectors."

The CSNA filed its case on 17 March, and the High Court has now granted leave to proceed with a Judicial Review, a key step in the group's challenge to the legality and fairness of the new charges.

The legal challenges consist of a demand for a fair and transparent licensing fee system based on real costs and retailer input, and an argument that the Minister acted overreached his authority.

“The great news, delivered by Senior Counsel, marks a major milestone in the CSNA’s long-standing efforts to advocate for fair treatment of independent retailers,” said Jennings.

“This development means the CSNA will now have the opportunity to contest the legality and fairness of the new fees in court – a critical step in standing up for its members and challenging what it believes are excessive and unjustified charges.”

“This is not just about one fee – it’s about fairness and respect,” Jennings added. “Retailers have had enough. If the Government won’t stand up for small business, we will.”

The Judicial Review is expected to be heard in the High Court in October or November 2025.

Photo: Vincent Jennings, CEO of CSNA. (Pic: Mary Browne Photography)