Retailers group call for ‘smuggling tsunami’ to be tackled after Cork Cigarette Seizure – The Corkman, Irish Independent

July 31 2024

A group which represents the interests of over 3,000 small and medium-sized retailers has called on the Government to further tackle Ireland’s “smuggling tsunami” following Revenue’s seizure of 4.67 million cigarettes at the Port of Cork on Tuesday.

Retailers Against Smuggling (RAS) welcomed the seizure of the illicit cigarettes, said to be worth almost €4 million, and called for enforcement measures against illegal smuggling to be increased to adequately protect the Exchequer and retail revenues.

RAS said that earlier this month, it launched its pre-budget submission, which called on the Government to rethink its policy towards smuggling and illicit trade in order to tackle Ireland’s “smuggling tsunami”.

In its submission, the association called on the Government to reduce or freeze consumer taxers including tobacco excise, increase funding for detection and enforcement of smuggling and amend the Finance Act to prosecute all suspected smugglers at Circuit Court level or higher.

RAS said the scale and magnitude of Ireland’s smuggling problem is clearly illustrated by how the value of illegal cigarette smuggling is on course to double this year.

“In the recently published Tax Strategy Group, which sits under the Department of Finance, it was recognised that despite increases to Tobacco Products Tax (TPT) in successive budgets, there has been a noticeable decline in receipts while smoking prevalence remains the same,” an RAS statement read.

“The TSG warns that ‘the notable increase in the volume of products consumed outside the scope of Irish excise duty raises concerns that price increases may be creating incentive for black market activity.’”

The RAS said a total of 31 major seizures came to the value of €58 million, at a loss of €45 million to the exchequer last year. It said, in the first half of this year alone, there have been 28 major seizures, worth a total value of around €57 million and a loss to the exchequer of €43 million. The value of tobacco products seized is looking as if it is set to double on last year.

A poll of over 1,000 Irish adults conducted in spring of this year by Irish Thinks, on behalf of Retailers Against Smuggling, found that illicit market activity is becoming more and more normalised among the Irish public, with a quarter (25%) of all respondents having knowingly purchased some goods or services from an unofficial or irregular seller in the past 12 months.

The RAS said with summer typically being a peak travel season, this means there are more people than usual moving through duty-free shops and other transit points, increasing the likelihood of people purchasing above and beyond the duty-free limits set on alcohol and tobacco.

Spokesperson for RAS, Seamus Griffin, said smuggling is a “real issue” that is hitting retailers where it hurts most.

“While we as retailers play by the rules and uphold the law, smugglers are skirting around those same laws and cutting from our profits. It is time for a serious investment in detection and enforcement to ensure those breaking the law face real consequences. Without this, the integrity of our businesses and livelihoods are at risk,” Mr Griffin said.