‘Worrying’ increase in illegal cigarettes

TOBACCO smuggling is not a victimless crime but “organised fraud on a global scale” according to the Office of Revenue Commissioners, as recent figures reveal that nearly one in five cigarettes sold in Ennis is illegal.

Figures from MS Intelligence for the second quarter of 2012 have shown the amount of non-Irish duty paid (NIDP) cigarettes in Ennis is 18.2%, with the national average at 29.8%. The research, which was carried out by collecting empty packs from 22 towns and cities across the country, shows a national increase from the same period last year when the NIDP rate was 23.8%.

A spokesperson for the Irish Tobacco Manufacturers Advisory Committee (ITMAC) has described the figures as “worrying”.
“The NIDP reached one of its lowest rates in the same period last year and this was following the Government’s freeze on excise on cigarettes and the increased focus put on the area by the Revenue and gardaí. However, following the Government’s increase in the VAT and excise in the last budget, pushing the price of a packet of 20 cigarettes to over €9, there has been a surge in the amount of NIDP cigarettes on the streets.”

The spokesperson went on, “Ireland is a target for international crime gangs due to our paltry fines and the ease at which illegal cigarettes can be sold here. This is costing Ireland hundreds of millions every year. It’s bringing crime into the community and it’s selling a product that is circumventing Department of Health guidelines. These figures just reinforce the fact that the problem is not going away.”

According to the Revenue Commission, the measurement of the scale of the trade of illegal cigarettes is “difficult in any country”. However, it is tentatively estimated that illicit cigarettes accounted for approximately 15% of all cigarettes consumed in the State in 2011. This represents a potential loss of €258 million in excise duty and VAT for the Irish Exchequer. The Revenue does not have a breakdown for individual towns.

Revenue Commissioner Liam Irwin, voicing his concern about the trade, has insisted, “Tobacco smuggling is organised fraud on a global scale. It brings criminality into our communities and robs millions of euro from the State each year.”

The Revenue’s tobacco strategy outlines, “The illegal trade in tobacco products is one of the most serious threats to the Irish Exchequer. It also militates against the Government’s anti-smoking policies.”