Massive spike in illicit roll your own tobacco damaging legitimate retailersMay 10, 2019
Latest Excise Hike leaves Retailers at a LossOctober 8, 2019
Retailers Against Smuggling have welcomed a call from the Royal College of Physicians of Ireland for extra funding to be made available for anti-smuggling measures in their Budget 2020 submission published this week. RAS spokesperson Benny Gilsenen said “We agree with the RCPI that additional funding should be made available for anti-smuggling measures. RAS have asked for extra funding for Revenue and the Gardaí year on year. This year is especially important with Brexit due to happen at the end of October and still no deal in place. Government also needs to recognise the significant increase in the illegal trade of Roll Your Own (RYO) tobacco, which has more than doubled in the last two years.” RAS are calling on the government to increase spending on anti-illicit trade measures and to freeze any further excise hikes on tobacco products until the situation is under control.
Note to the editor:
- Ipsos MRBI’s Illegal Tobacco Products Research Survey 2018 that there was no decrease in the level of illicit cigarettes in Ireland with the figure for illegal packs remaining at 13%, and non-Irish duty paid (NIDP) at 9%. The survey found that approximately 453 million illegal cigarettes (23 million packs) were consumed in Ireland in 2018, representing a loss to the Exchequer of approximately €211 million.
- A growing area of concern for retailers is the illicit trade in Roll Your Own tobacco (RYO) following the introduction of a 30g minimum RYO pack size on 20 May 2017. This new minimum means that the vast majority of RYO consumers face large ‘out of pocket’ spending increases, some as high as 300%, therefore pushing those users to purchase on the illicit market. The Illegal Tobacco Products Research Surveys 2018 found that the number of illicit RYO pouches held by smokers surveyed has more than doubled in the last two years – jumping to 21% from 9% in 2016