219. Deputy John Paul Phelan asked the Minister for Finance if he has any plans to commission an independent assessment of the extent to which tobacco excise increases in recent years are leading to increased illicit market activity, evidenced by the recent detection of a large-scale illegal cigarette factory in Dublin; and if he will make a statement on the matter. [11619/24]

225. Deputy John Paul Phelan asked the Minister for Finance the measures being taken, and additional resources being provided to the Revenue Commissioners to detect and crack-down on the production and sale of illegal tobacco products in Ireland, following the recent detection and closure of a large-scale illegal cigarette factory in Dublin; and if he will make a statement on the matter. [11770/24]

Michael McGrath, Minister for Finance:  I propose to take Questions Nos. 219 and 225 together

The Government is aware that high prices and taxes may make Ireland an attractive location for the illicit trade of tobacco products and therefore tobacco smuggling remains a high priority area. The illicit trade detracts from legitimate businesses, drains resources from the Exchequer, and undermines our public health strategy.

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. IPSOS MRBI will present the 2023 survey results to Revenue next month.

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

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, 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. 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.

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