Home > Dáil Éireann debate. Written answers 260, 267, 268, 270, 271, 272 - Illicit trade [tobacco] [22940/23, 22941/23, 22942/23, 22943/23, 22944/23, 22945/23].

[Oireachtas] Dáil Éireann debate. Written answers 260, 267, 268, 270, 271, 272 - Illicit trade [tobacco] [22940/23, 22941/23, 22942/23, 22943/23, 22944/23, 22945/23]. (16 May 2023)

External website: https://www.oireachtas.ie/en/debates/question/2023...


260. Deputy Noel Grealish asked the Minister for Finance if he is concerned by the results of a recent Revenue survey which found that 30% of cigarettes smoked in Ireland are either illegal cigarettes or are being sourced by smokers from other countries; if he will take action to prevent access to and or the sale of such products; and if he will make a statement on the matter. [22840/23] 

267. Deputy Noel Grealish asked the Minister for Finance the new or improved enforcement actions he proposes to take in light of a recent Revenue survey which found that 30% of cigarettes consumed in Ireland are either non-Irish-duty paid or illegal cigarettes; and if he will make a statement on the matter. [22841/23] 

268. Deputy Noel Grealish asked the Minister for Finance if he is aware of a recent survey by Revenue which found that one-third of smokers purchased their cigarettes on the black market or overseas in 2022; if he will initiate a public campaign to deter the high numbers of smokers who are purchasing illegal cigarettes; and if he will make a statement on the matter. [22842/23] 

270. Deputy Michael Lowry asked the Minister for Finance the number of prosecutions secured against those involved in tobacco smuggling in 2022; if he considers this level of prosecutions sufficient, in light of the recent Revenue Commissioners’ survey which found that 30% of tobacco products consumed in 2022 were non-Irish duty paid and illegal; and if he will make a statement on the matter. [22943/23] 

271. Deputy Michael Lowry asked the Minister for Finance the measures he has in place to enforce adherence to duty-free travel allowances for tobacco and alcohol at Ireland’s ports and airports; and if he considers these enforcement measures adequate, in light of a recent Revenue Commissioners’ survey which found that 30% of tobacco products consumed in 2022 were non-Irish duty paid and illegal cigarettes; and if he will make a statement on the matter. [22944/23] 

272. Deputy Michael Lowry asked the Minister for Finance if he is aware that the cost to the Exchequer of illegal cigarettes in 2022 was approximately €384 million in lost excise and VAT receipts, a figure that represents an additional loss of €120 million when compared to 2021; the new measures he proposes to resolve the significant increases in illicit tobacco products; and if he will make a statement on the matter. [22945/23] 

Michael McGrath, Minister for Finance: I propose to take Questions Nos. 260, 267, 268, 270, 271 and 272 together. 

I am advised that each year since 2009, Revenue, in conjunction with the HSE’s National Tobacco Control Office, has commissioned Ipsos MRBI to conduct independent market research among smokers about the source of their cigarettes. The survey is an independent research study into illegal tobacco products behaviour patterns, the purpose of which is to estimate the volume of non-Irish duty paid cigarettes being consumed in Ireland. Since 2013, this cigarette research has been complemented by an additional survey on roll your own tobacco. The survey was paused in 2020 due to the COVID-19 pandemic and the associated public health restrictions. 

The survey resumed in 2021 and the 2022 findings have just recently been published and can be viewed on the Revenue website. 

The key findings of the 2022 survey are:

- 17% of the cigarette packs held by smokers surveyed were classified as illegal

- 13% of the packs were found to be legal but non-Irish Duty Paid

- 17% of pouches of roll your own tobacco held by smokers surveyed were classified as illegal

- 10% of the pouches were found to be legal but non-Irish Duty Paid. 

Of the 17% of cigarette packs found by the survey to be illegal:

- 88% were classified as contraband (i.e. normal commercial brands of cigarettes bought duty paid or duty-free outside the country and smuggled into Ireland).

- 12% were classified as “illicit whites” (cigarettes manufactured for the sole purpose of being smuggled into and sold illegally in another market). 

The Deputies should be aware that as regards the 30% figure referred to in their questions, this is made up of 17% of cigarettes classified as being illegal whereas 13% of are legal, although non-Irish Duty Paid. 

Revenue recognises the risks associated with the availability of duty-free tobacco and cigarettes and takes appropriate measures to mitigate those risks. I am advised that Revenue has a programme of engagement with duty free operators, airlines, ferry companies, etc. who sell duty free goods to ensure that they are kept up to date with the regulations covering duty free sales. They are also reminded to inform passengers of their duty-free entitlements when purchasing duty free goods. Additionally, Revenue has controls in place in airports and ports to combat abuses of the duty-free regime. Where passengers are encountered carrying goods in excess of their duty-free allowances and have not declared same to Customs, these excess goods may be seized with a view to prosecuting those involved. 

I am assured that Revenue is committed to targeting the illicit tobacco trade and implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco products, including duty free tobacco in excess of normal allowances and where possible prosecuting those involved. In this work, Revenue’s Customs Officers at national ports and airports, regularly deploy detector dog units and use a combination of risk analysis, profiling, intelligence, and the screening of checked-in and carry-on baggage. 

I am advised by Revenue that it uses a range of measures to tackle the sale of illicit cigarettes on the black market. At the core of these measures is identifying and targeting the smuggling of illicit tobacco products into the State, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade. 

Government has also ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade and I am open to considering any proposals from Revenue for further legislative changes, as needed. Legislative reforms made over the years in this area include:

- The Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excise products.

- The Finance Act 2013 introduced new offence and forfeiture measures relating to the illicit production of tobacco and strengthened the offence provisions relating to the sale or delivery of unstamped tobacco products.

- The Finance (No. 2) Act 2013 provided that a person suspected of an offence of dealing in, or with, unstamped tobacco products must provide information to a Revenue Officer or a Garda and may be required to present any tobacco product concerned for examination, and make provision for search by a Revenue Officer or Garda of any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence. 

Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2022, it seized 51.6 million cigarettes valued at €39.5million and 11,803kgs of tobacco with an estimated value of €8.5million. Additionally, it obtained 41 summary convictions relating to the sale of illicit tobacco, 4 of which were on indictment with fines of €76,250 imposed. There were 24 convictions relating to tobacco smuggling in 2022, 4 of which were on indictment, with fines of €35,100 imposed. 

I am advised that Revenue optimises media engagement in terms of successful prosecutions, significant seizures and enforcement initiatives, ensuring the general public is aware of the commitment by Revenue to tackling the illicit cigarette and tobacco trade and to deter those involved. To further encourage the general public to engage with Revenue in its efforts targeting the shadow economy and the supply of illegal tobacco products, Revenue includes a message on all press releases relating to tobacco products seizures, notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295. 

The smuggling of tobacco products is an illegal transnational activity. The production and distribution of illicit cigarettes crosses international boundaries. In response Revenue, in conjunction with national and international law enforcement partners, undertakes a programme of activity to counter those involved in such illegal activity. In addition, Revenue engages in joint operations with international partners, including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation in countering the activities of those involved in the illicit international tobacco trade. 

I am satisfied that Revenue is very alert to the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer. I commend Revenue and all the relevant State agencies for their work in this important area and I am satisfied that there is an appropriate focus on tackling this form of criminality.

Item Type
Dail Debates
Publication Type
Irish-related
Drug Type
Tobacco / Nicotine
Intervention Type
Crime prevention
Date
16 May 2023
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