Retailers Against Smuggling (RAS) has welcomed the news of a seizure of eight million smuggled cigarettes, but warned that the pace of smuggling is increasing.
This week, Revenue seized eight million smuggled cigarettes in County Meath, with a retail value of almost €7.2 million, signifying a loss of €5.7 million to the Exchequer.
This marked the 33rd major illegal-cigarette seizure in Ireland this year – up from 31, overall, in 2023.
RAS, which represents over 3,000 retailers across Ireland, is urgently calling on the government to reduce or freeze taxes that impact the price of consumer goods, including a freeze on tobacco excise.
Ireland has one of the highest rates of illegal tobacco trade in Europe, with 85.4 million cigarettes seized by Revenue already this year, with a total retail value of €81.7 million, signifying a loss of €63 million to the Exchequer.
In terms of total losses to the Exchequer, August’s figures passed the total loss from all of 2023, with the loss already €18 million greater for 2024 than last year, and with two months of the year still to go.
Tax Strategy Group papers noted that a 50c increase in excise on a pack of 20 cigarettes in the recent Budget would theoretically bring in €40.6 million.
However, it also noted that the loss incurred from non-Irish duty-paid cigarettes and illicit trade was approximately €422 million in 2023.
RAS has warned the government that high taxes will benefit smugglers and hurt legitimate retailers, as it continued to posit that high excises only serve to fuel illegal trade and ultimately cost the government.
‘An Honest Discussion’
Commenting on the impact of excise on tobacco sales, RAS national spokesperson Benny Gilsenan said, “I have seen illegal cigarette trade skyrocket in recent years, and the same will happen for alcohol, fuels and medicines if the government does not get serious.
“Tackling twenty-first-century smuggling in Ireland undoubtedly requires greater enforcement, but also requires an honest discussion of the factors driving illicit trade, including tax increases and a perception that Ireland is lax in its approach to enforcing and penalising acts of smuggling.”
RAS additionally called on Revenue to enforce restrictions on illicit trade and smuggling.
To achieve this, it has appealed for more funding for Revenue through Budget25, for resources such as X-ray scanners, airport inspections, and sniffer dog units.
Read More: Budget25 Reactions – VAT, Tobacco And Minimum Wage
