374. Deputy Jim O'Callaghan asked the Minister for Finance his intended response to cross-Border smuggling, and in particular to the increase in seizures of tobacco products, which constitute a serious loss to the Exchequer. [35647/24]

382. Deputy Brendan Smith asked the Minister for Finance the new measures his Department and the Revenue Commissioners will implement to deal with the problems of smuggling tobacco (details supplied); and if he will make a statement on the matter. [35823/24]

Jack Chambers, Minister for Finance: I propose to take Questions Nos. 374 and 382 together.

I am assured that Revenue is committed to targeting the illicit tobacco trade. It 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 also 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 continues to adopt an agile response to this threat and continually monitors trends in the illicit tobacco trade and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.

The smuggling of tobacco products has a transnational and cross border dimension and in addition to Revenue’s ongoing cooperation with An Garda Síochána, I am advised that Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF) and international bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.

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 notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295 at any time.

I am pleased to acknowledge that Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2023, Revenue had 5,164 seizures of cigarettes valued at €55.7m and 1,673 seizures of tobacco with an estimated value of €7.7m. To the end of August 2024, Revenue had 3,335 seizures of cigarettes valued at €73.1 million and 1,077 seizures of tobacco valued at €30.6m. Further successes, highlighting Revenue’s approach to the illicit tobacco trade include the detection and dismantling of an illicit commercial cigarette factory in Dublin in February 2024.

Revenue’s high detection rate is attributable to its multi-faceted tobacco strategy, continued cooperation and intelligence sharing with other national and international law enforcement agencies, its highly trained staff and its advanced profiling methods and strategic use of appropriate detection technology and assets, particularly its highly effective detector dogs.

The Government has ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade. I am satisfied that the current legislative framework provides an effective basis for undertaking and continuing its important work in this area. I am assured that Revenue is aware of the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer and I commend Revenue and all the relevant State agencies for their work in this important area.

This Government has been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration and I remain open to considering any proposals from Revenue that will support its work in combatting fraud, illicit trade and smuggling.