RAS Blog

Category: Budget News

  • Pre-Budget Submission 2026 – Tackling Ireland’s Out-of-Control Black Market

    In June 2025, RAS published it’s pre-budget submission for 2026. Read our submission here.

  • RAS Calls For Freeze In Excise Budget 2026 To Tackle Tobacco Black Market – Checkout.ie

    May 23 2025

    Retailers Against Smuggling (RAS) has called for the Department of Finance to introduce a freeze on the Tobacco Products Tax, to help fight the spiralling black market in illicit tobacco.

    The RAS pre-Budget submission, lodged ahead of Budget 2026, was hand-delivered on Thursday, to the Department of Finance, by retail representatives from Dublin and Limerick.

    In addition to a freeze on the Tobacco Products Tax, the submission calls for the recruitment of 250 additional frontier staff members and the purchase of additional scanners to detect illegal tobacco and enforce duty-free travel allowances.

    It also called for an increase in the fines and prison sentences handed down for court convictions of illegal smuggling.

    RAS noted that the recent publication of the Revenue Commissioner’s Illegal Tobacco Product Research Surveys 2024 proves that the government is losing the battle against Ireland’s spiralling market in illicit tobacco.

    The survey found that 37% of cigarette packs in circulation had no Irish excise duty paid thereon, as they were either illegal or purchased outside of Ireland.

    In the case of the roll-your-own (RYO) tobacco market, the proportion of products in circulation with no Irish duty paid was a staggering 49%.

    Based on Revenue’s survey, RAS estimates that the retail value of Ireland’s untaxed market is now worth €790 million.

    The Revenue Commissioner’s survey further concludes that the scale of illegal cigarette sales in 2024 resulted in €590 million in lost taxes to the Exchequer.

    RAS estimates that a further €249 million was lost on the 11% travel purchases of cigarettes, and a further €95 million lost in taxes on RYO tobacco, resulting in €934 million in lost taxes in 2024.

    ‘Spiralling Out Of Control’

    Dublin retailer and RAS national spokesperson Barry Gilsenan said, as he delivered the pre-Budget submission, “Ireland’s black market in tobacco is spiralling out of control – and it’s taking business away from legitimate Irish retailers.

    “One of the main reasons Ireland’s untaxed cigarette market has grown so large is because continuous increases in excise are driving people to purchase the cigarettes from the black market or abroad.

    “What’s worse, the latest Revenue figures don’t reflect the whopping €1 excise on cigarettes in last year’s Budget.

    “We are calling on the government to take tough and decisive action in Budget 2026 to protect legitimate retailers from tobacco-smuggling and the out-of-control black market in tobacco.

    “This needs to include a freeze in excise to tobacco, to try to halt the flight of consumers to the black market and to allow the government and Revenue Commissioners to get on top of the problem before it gets any worse.”

  • Retailers Against Smuggling call for government to increase resources in budget to combat smuggling 

    Retailers Against Smuggling call for government to increase resources in budget to combat smuggling 

    Illegal tobacco sales cost the Exchequer €384 million in 2022, Revenue needs more funds to combat smuggling  
     

    In its pre-budget submission released today, Retailers Against Smuggling have called for increased resources for Revenue to combat smuggling at a time where 30% of tobacco products consumed in Ireland are either illegal or Non-Irish Duty Paid, costing the Exchequer €384m in 2022. 

    RAS proposes that 30% of funds collected from the new licence fee is ringfenced for initiatives that will meaningfully deal with the growth of smuggling activities in the country. Currently, Revenue has 23 detector dog teams and three mobile x-ray scanners. With more than 1.2 million freight vehicles and trailers passing through the three main Irish ports last year, Revenue faces a mammoth task in detecting counterfeit goods being smuggled into the country and so meaningful resources are desperately needed against this backdrop. 

    In the space of just one week (25-31 May, 2023) Revenue seized nearly 8 million cigarettes at Dublin Port representing a loss of €5m to the Exchequer; with two further major seizures of 10 million cigarettes on June 9, and €10 million worth of counterfeit cigarettes seized in Dublin on July 4, showing the size of the illegal tobacco market in Ireland.   

    The magnitude of this issue can be best explained by the outcome of a recent poll by Ireland Thinks which found that 32% of smokers said they were prepared to purchase illegal tobacco. To sum this up, Revenue estimates the amount lost to the Exchequer from illegal cigarettes to be more than €2.1 billion between 2013 and 2022. 

    17% of all cigarette and roll-your-own packs in Ireland have been found to be illegal, with a further 13% being non-Irish Duty Paid, representing 30% of all tobacco products in the country. Rates of illegal cigarettes in 2022 jumped by 43% compared to the previous year (Source: Revenue Illegal Tobacco Products Research Surveys 2022). 

    Under the Public Health Bill, the new licensing system will require a retailer who wishes to sell tobacco products or nicotine inhaling products to apply for an annual licence for each outlet with a yet unspecified fee, instead of a once-off fee of €50 in the current registration system. This new system will add further unnecessary administrative burden and cost on retailers.  
     

    The border with Northern Ireland is also causing issues for retailers. According to a recent RTE Prime Time Investigates programme from April 2022, 100,000 tonnes of smoky coal smuggled from Northern Ireland (which is not subject to carbon tax) is costing the Exchequer €8.7 million. If this continues, by 2025, a total of €77 million will be lost to the State through carbon tax evasion alone. 
     

  • Budget 2021 excise hikes will fuel further smuggling and penalises legitimate retailers

    Budget 2021 excise hikes will fuel further smuggling and penalises legitimate retailers

    Retailers Against Smuggling has expressed grave concern that yet another excise increase will lead to further increased rates of tobacco smuggling directly impacting legitimate registered retailers. The group was reacting to Budget 2021 announced by the Minister for Finance, Paschal Donohoe TD which included an increase of 50c on tobacco, bringing the cost of an average packet of 20 cigarettes to €14.00.

    Commenting National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It is very disappointing to see honest retailers take yet another blow with today’s excise increase which will inevitably make it even harder to compete with a growing black market. We have some of the highest rates of duty on tobacco products in the EU and it is no wonder that Ireland continues to be a target for tobacco smugglers, even while there is Covid-19 restrictions on travel in place.”

    In Revenue’s 2019 Annual Report, its Illegal Tobacco Products Research Surveys revealed that 15 per cent of cigarette packs held by smokers surveyed were classified as illegal. Also, in the Department of Finance’s own Tax Strategy Group paper it was noted that Revenue Commissioners have previously indicated that further increases in excise duties may not lead to increased revenue yields.

    Mr Gilsenan added: “We fully expect that the percentage of smuggled tobacco on the Irish market will continue to rise because of the increase, voiding any potential gains to the exchequer. As consumers turn towards the black market, ultimately it is the retailer who suffers through the loss of not only the legal purchase of cigarettes but also any potential additional purchases that person might make when they are in the store.

    “With Covid-19 restrictions set to be a reality of life for months to come and the looming uncertainty of Brexit, the detection and seizure of illegal tobacco products must remain a priority for Irish authorities, with increased awareness of the elaborate means criminal gangs are utilising to transport these huge volumes. Revenue and An Garda Siochana must be given the correct resources to ensure that criminals don’t continue to reap the benefits of the high cost of tobacco products.”

  • Retailers Against Smuggling attend Leinster House briefing to raise awareness of the growing concern surrounding smuggling in Ireland

    Wednesday 4 July, Dublin

    On Wednesday, 4 July, Retailers Against Smuggling (RAS) attended a Leinster House briefing hosted by Fianna Fáil Deputy Declan Breathnach to raise awareness of the growing concern surrounding smuggling in Ireland.

    Following the success of our ‘Brexit, the Border and the Black Market’ roundtable in Belfast on 15 June, Deputy Breathnach invited RAS into Leinster House to speak about how illicit trade is negatively impacting Irish Retailers and our local communities.

    RAS believe that until measures are taken to effectively tackle smuggling to protect small businesses, there should be no further increase in excise. We have witnessed a growth in Non-Irish duty paid which is a major concern to retailers, from 17% in 2013 to 20% in 2017 and due to the year-on-year increases in excise, this is likely to grow even further. Further hikes will lead to greater price differentials between legitimate, legal, duty-paid products and illicit, non-duty-paid products. We are calling for a moratorium on further excise increases until they can be proven not to lead to a surge in smuggling.

    RAS spokesperson, Benny Gilsenan, said: “We want to give a voice to the shopkeepers around the country that are having their business undermined by smuggled tobacco, alcohol and solid fuel. Retailers face an uncertain future with Brexit looming, so the Government needs to totally reconsider its policy of year-on-year excise increases, which clearly helping fuel the illicit trade and to provide more resources to Revenue to stop the flow of illicit goods into Ireland and our local communities. We’re grateful for the opportunity today to speak at Deputy Breathnach’s briefing today and help raise awareness of this growing issue for small retailers.”

  • Border retailers 70% more concerned about impact Brexit will have on smuggling and the border, compared to last year’s annual survey

    14 June 2018, Dublin

    Retailers Against Smuggling (RAS) are launching their second annual survey at the second high-level roundtable discussion in Belfast to tackle Brexit, the Border and the Black Market. Members of the Irish Government, An Garda Síochána, the PSNI and HMRC will meet to discuss the issues that retailers on both sides of the border will face in the coming months and years.

    The cross-border survey conducted by RAS has revealed that since last year border retailers in both Ireland and Northern Ireland are almost 70% more concerned about the impact Brexit will have on smuggling and the sale of illicit goods in their communities. Responses from retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with retailers across Northern Ireland. The survey results demonstrate the fact that the growing issue of smuggling over the border must remain a priority during all Brexit negotiations.

    The survey found that 3/5 retailers in Northern Ireland have noticed an increase in the trade of smuggled products in the past year, while 90% of border retailers in Ireland believe the trade of smuggled products impacts their profits by 5-10%. 43% of retailers on the North side of the border estimate this same impact to be 10-20% of their turnover.

    RAS spokesperson and Dublin based retailer Benny Gilsenan said “It’s not just the loss of revenue from missing out on the sale of a packet of cigarettes or bottle of wine. Retailers find that when a customer doesn’t buy these in their shop, they’re not buying their pint of milk, they’re not buying their sliced pan with us either. It has a huge knock on effect on small businesses, and this is seen on both sides of the border.”

    CEO of Retail Excellence Ireland Lorraine Higgins said “Greater consideration needs to be given to the challenges retailers are facing, and how Brexit will only exacerbate those difficulties. Rising excise tax has proven to be an ineffective way of dealing with the problem, we need to see the Sale of Illicit Goods Bill introduced so that progress can finally be made.”

    CEO of Retail NI Glyn Roberts said “It has become strikingly clear that more resources need to be made available to tackling the issue of smuggling in Ireland. Government needs to listen to retailers and provide the necessary supports.”

    A key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products.

    The survey also revealed a shocking lack of trust in the resources made available to the authorities by Government with only 1/5 retailers of the belief that the PSNI and An Garda Síochána have the resources they need to deal with smuggling and illicit trade in their area both north and south of the border. Only 1/5 border retailers believe that the authorities have adequate resources. Of the Northern Irish border retailers who have never reported trade in illicit goods in the past, 63% said they would not report illicit trading because they believed it would make little difference.

  • Increase in excise on cigarettes nothing more than stealth tax on customers and a gift to criminals – Retailers Against Smuggling

    10th October 2018, Dublin

    Retailers are angry at the Government’s decision to impose yet another excise increase of 50c on tobacco, bringing the total cost of a packet of cigarettes to 12 euro. The move comes despite the Tax Strategy Group clearly stating in July that an increase in excise on tobacco would not generate any additional revenue, given the resultant levels of smuggling and money lost to the Exchequer.

    Retailers Against Smuggling (RAS) is in no doubt that these excise increases, which make Ireland the most expensive place in the EU to buy cigarettes, only serve to further incentivise smuggling and undermine Irish retailers.

    RAS’s pre-budget submission had called for a moratorium on further excise increases until they could be proven not to lead to a surge in smuggling as a result of price differentials.

    RAS spokesperson Benny Gilsenan: “Today’s decision is another slap in the face to retailers that have been compliant with every decision made by this Government, and who want more resources to be given to Revenue to protect businesses from illicit trade in tobacco, alcohol and solid fuel. Excise increases only widen the gap between legitimate shop-owners that are earning an honest living, and gangs peddling €5 cigarette packets in our communities. What’s more, this is little more than a stealth tax on our law-abiding customers, who choose to buy legitimate product rather than smuggled product from the street.”

    RAS’ budget submission called for not only a halt on excise increases, but also for more resources for Revenue; the registration of all solid fuel retailers and parliamentary support for the Sale of Illicit Goods Bill which is designed to address smuggling. If the Government is truly committed to helping retailers, these suggestions from our industry must be taken seriously. Mr Gilsenan continued “Our budget submission was reasonable and designed to protect small retailers nationwide. The government has completely ignored us yet again and the ramifications will be obvious in the coming months.”

  • Tax Strategy report encouraging Budget 2017 excise increase is direct win for smuggling criminals

    21 July 2016

    Retailers Against Smuggling (RAS) Spokesperson Benny Gilsenan expressed his frustration and disappointment following the publication of the Tax Strategy Group report (TSG) today which suggested it may be prudent to raise the Minimum Excise Duty in Budget 2017: “despite the TSG highlighting that 12% of cigarettes in Ireland are illicit and that we have a huge problem with tobacco product smuggling, the Government are being advised to continue to raise the price of cigarettes which will only impact legitimate retailers and the poorer in our society”. The Healthy Ireland Survey (October 2015) found that smoking levels are higher amongst those living in the most deprived areas and in lower social classes. Therefore increases in excise tax on cigarettes directly affects the poor and marginalised in society and in turn leads to the diversion of smokers to the illegal cigarette market.

    Over the period 1994 to 2015, Tobacco Products Tax fell from contributing 4.3% of Exchequer tax revenue to 2.4% despite excise on tobacco products increasing in 20 of the last 24 budgets. Benny continued “It is clear to me that the Government will not take into consideration the direct impact this is having on legitimate tax paying retailers and those less off in our society and are playing into the hands of the criminal who sell packs on the street for €4-5 undercutting retailers by a whopping 50%”.

    The TSG noted that the amount of illicit cigarettes seized by Revenue has been on the increase since 2012 and that this “is a clear indication of the significant level of both small-scale and bulk smuggling activity”. Benny concluded “until such time as smuggling has been brought under control in Ireland (under 5% of all product sold), there should be no further increases on tobacco excise”.

    Retailers Against Smuggling (RAS) represents over 3,000 retailers, working to generate widespread awareness of tobacco and fuel smuggling in Ireland, its cost to retailers, how it is affecting their local economy and how legitimate retailers are disadvantaged because of smuggling by organised criminal gangs on both sides of the border.