In June 2025, RAS published it’s pre-budget submission for 2026. Read our submission here.
Category: Government News
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Tax Strategy Group Papers confirm black market tobacco sales on the rise – Shelflife
25 July 2025
Retailers Against Smuggling (RAS) has called for urgent action to be taken to combat black market tobacco.
The group that represents over 3,000 small and medium sized retailers across the country noted that the Tax Strategy Group (TSG) Papers for 2026 admit that the prevalence of illicit and non-Irish duty paid tobacco illustrate that increases to excise duties ‘may not lead to increased revenue’, reinforcing that excise increases are fuelling a booming black market, rather than reducing smoking rates.
The papers follow on from Revenue’s recently published Illegal Tobacco Products Research Survey 2024- independently conducted by Ipsos MRBI- which revealed a staggering total loss of roughly €934 million in taxpayer money to illegal tobacco products last year alone, it added.
TSG publication
The TSG publication, which sets out options for tax policy changes, acknowledged that annual figures show the excise on tobacco products, which has increased by steadily increased by €3.75 since 2019, is having the opposite of its intended effect- pushing consumers to purchase illicit or non-duty paid tobacco, while the revenue generated by Tobacco Product Tax falls year on year.
According to the publication, despite intentions to increase revenue to the Exchequer through increased Tobacco Product Taxation, figures show that TPT revenue has in fact plummeted from €1.32 billion in 2020, to just €976 million in 2023- a loss of €342 million to the taxpayer.
Even more concerning, the TSG Papers noted that three quarters of this yield was collected prior to the Budget 2025 excise increase.
Meanwhile, Revenue statistics show the value of tobacco seizures doubled between 2023 and 2024, to €130 million, it added.
Benny Gilsenan, national spokesperson, RAS, stated: “As admitted by the Government in the latest Tax Strategy Group Papers, it is clear that increasing excise on tobacco products is not only having no effect on smoking rates- with €934 million in lost taxes on tobacco products, the scale of Ireland’s untaxed tobacco market is staggering – and it’s taking business away from legitimate Irish retailers in Ireland”
The TSG papers also call-out and discuss RAS’ pre-budget submission, which highlights this trend of tax loss in comparison to excise increase, and submits that a freeze on excise and improved detection and enforcement of illicit trade is the best option to increase TPT revenue and to put money back into taxpayer pockets.
Big spike
Reference is made to the stark Revenue Commissioner survey published this April, which revealed a whopping 37% spike in illicit market cigarettes.
These accounted for 26% of all cigarettes in circulation in 2024 compared to 19% in 2023, and were worth over €590 million in lost taxes.
RAS estimates that a further €249 million was lost on the survey’s reported 11% travel purchases of cigarettes in 2024.
No Irish excise or VAT has been paid on any of these cigarettes and RAS is concerned that many of these ‘legal’ cigarettes are being brought in breach of duty free and travel allowances.
RAS estimates that a further €95 million was lost in taxes on RYO Tobacco in 2024, bringing the total taxpayer losses on tobacco products to an astounding €934 million in one year alone.
“Continuous increases in excise are driving people to purchase the cigarettes from the black market or abroad, and we are seeing less money from the Tobacco Products Tax every year it is increased,” Gilsenan added.
“It has become clear it is no longer a financially viable approach, and it is time for the Government to focus on tackling illicit trade, rather than taking measures which affect legitimate retailers and the taxpayer.”
RAS pre-Budget submission
In its pre-budget submission, RAS are calling on the Government to:
- Freeze excise on cigarettes, which is already the highest in Europe, and is clearly fuelling tobacco smuggling
- Increase staffing and scanner resources to detect illegal tobacco being smuggled into Ireland, including through our airports through breaches of duty-free allowances
- Increase the fines and prison sentences for court convictions for illegal smuggling.
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Government loses almost a billion euros in taxes ‘as black market tobacco sales explode’ – Shelflife
Less than one-in-five illegal cigarettes were seized during 2024: RAS
30 April 2025
Government loses almost a billion euros in taxes as black market tobacco sales explode, noted Retailers Against Smuggling (RAS).
RAS has said the publication today (30 April) of the Revenue Commissioner’s Illegal Tobacco Products Research Survey 2024 proves that Government is losing the battle against Ireland’s booming market in illicit tobacco.
Cigarettes
Less than one-in-five illegal cigarettes were seized during 2024, research shows.
Today’s Revenue Commissioner survey finds that 37% of cigarette packs in circulation had no Irish excise duty paid as they were either illegal or purchased outside Ireland.
This marks an increase from 34% in 2023. In the case of the Roll-Your-Own tobacco market, the proportion of products in circulation with no Irish duty paid was a staggering 49%. The numbers indicate that the illicit trade in RYO tobacco has increased by 53% when compared to last year’s findings.
The Revenue Commissioner survey reveals that illicit market cigarettes accounted for 26% of cigarettes in circulation in 2024 and was worth over €590 million in lost taxes.
RAS estimates that a further €249 million was lost on the 11% travel purchases of cigarettes in 2024.
No Irish excise or VAT has been paid on any of these cigarettes and Retailers Against Smuggling is concerned that many of these ‘legal’ cigarettes are being brought in breach of duty free and travel allowances.
RYO
Half of all Roll-Your-Own (RYO) tobacco in circulation had no Irish duty paid, RAS highlighted.
RAS estimates that a further €95 million was lost in taxes on RYO Tobacco in 2024.
Commenting on the findings, Benny Gilsenan, Spokesperson, RAS National, stated: “With €934 million in lost taxes on tobacco products, the scale of Ireland’s untaxed tobacco market is staggering – 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, a trend being allowed by a serious lack of enforcement of duty free and travel allowances.”
Further findings
Polling conducted by Ireland Thinks on behalf of RAS in November 2024 showed that a sizeable majority (58%) of those who bought cigarettes bought some or all of them from abroad, up from 45% in March 2024.
RAS’s concerns have been confirmed by the Revenue Commissioner’s survey which recognises “a notable increase in illicit trade attributed to informal imports sourced through friends.”
The survey found that the percentage who sourced cigarettes from “Friend brought them home from a trip abroad” nearly doubled from 15% in 2023 to 27% in 2024.
The regulated cigarette market in Ireland – for which excise duty was paid – had a total retail value €1.34 billion in 2024, meaning that black market cigarettes (making up the 26% of the cigarettes in circulation according to today’s survey) were worth over €550 million in 2024.
The Revenue Commissioners successfully seized €96 million in illegal cigarettes in 2024, meaning they seized less than one in five of all illegal cigarettes in circulation in Ireland last year.
‘Exorbitant excise rate’
RAS claim that Ireland’s exorbitant excise rate on tobacco, which is the highest in Europe, is fuelling the increase in black market activity.
“The Government has its head in the sand on the impact that the huge excise burden on tobacco is having on the legitimate market,” Gilsenan added.
“What’s worse, these 2024 Revenue figures only reflect the 2023 excise increase of 75 cents on cigarettes. In late 2024, Government lumped a whopping €1 excise on cigarettes.
“This means that the current levels are most likely much higher than the 2024 figures.
“The last three Revenue Commissioner illegal tobacco surveys have found the highest ever illicit figures recorded for tobacco in Ireland; year on year the problem is just growing, and legitimate retailers are losing out. In spite of this, Government lumped on the highest ever excise increase last year, it’s just a baffling response to this clear loss of control of the black market.”
RAS are calling on the Government to:
Freeze excise on cigarettes, which is already the highest in Europe, and is clearly fuelling tobacco smuggling;
Increase staffing and scanner resources to detect illegal tobacco being smuggled into Ireland, including through our airports through breaches of duty-free allowances;
Increase the fines and prison sentences for court convictions for illegal smuggling.
Read more: Retailers Against Smuggling welcome budget 2025 tax strategy paper
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RAS Notes That 60% Of Tobacco-Related Convictions Are Untracked – Checkout.ie
April 22 2025
Retailers Against Smuggling (RAS) has called attention to the fact that less than half (40%) of fines issued for summary prosecutions for tobacco smuggling are being tracked for payment or non-payment.
The organisation blamed the gulf on an ad-hoc system of coding of prosecutions.
It has now called on the Revenue Commissioner and Courts Service to urgently address serious gaps in the data relating to the payment of fines for tobacco-related convictions.
An analysis by RAS shows that over the five years from 2020 to 2024, there were a total of 316 summary convictions at District Court Level for tobacco offences, on charges such as smuggling or evasion of excise duty and illegal selling.
This resulted in 285 fines being issued.
However, the Courts Service can only provide data on whether fines were paid in relation to 114 of these convictions, amounting to only 40%.
This analysis is based on data sourced from a Freedom of Information request and answers to parliamentary questions.
Prosecution Codes
In response to RAS’s Freedom of Information request, the Courts Service advised that it can only provide data in relation to fines for which offence codes were used on the system by prosecutors.
Prosecutors may have used uncoded free text for some offences and thus, data is unavailable in these instances.
RAS has stated that it believes the ad-hoc system of prosecutors being able to enter any code they wish is inadequate and, given the importance of the quality of data to policy making and public service management, this practice must be addressed to ensure prosecutions are accurately coded.
The organisation has reached out to the government asking that they urgently address the ad-hoc system of coding to plug serious data gaps relating to the payment of fines for tobacco and related offences.
‘Adequate Enforcement’
Speaking about this call to action, RAS national spokesperson Barry Gilsenan said, “Fines for tobacco smuggling in Ireland are pathetically low, and we don’t know if they’re all being paid.
“Smuggling and illicit trade are increasingly prevalent and those caught engaging in these illegal acts must be properly held to account.
“Accurate data will allow policymakers to understand the state of the black market.
“RAS are calling for increased penalties levied on offenders and adequate enforcement of those penalties.
“As it stands, a majority of offenders are off the hook for their crimes, as they face no repercussions for their crimes.
“We must deter black market tobacco trade and protect legitimate retailers in the process.”
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Illegal cigarette sellers are big winners in Budget 2025
October 01 2024
Government has decided to reward criminal gangs at the expense of legitimate retailers
Retailers Against Smuggling is extremely disappointed with the Government’s decision to increase excise on tobacco in Budget 2025. RAS believes this excessive excise increase represents a big win for illegal tobacco sellers and represents a further blow to legitimate Irish retailers. Government is continuing to ignore the increasing levels of illicit tobacco products in Ireland, with Revenue finding that the last two consecutive years had the highest level of illicit cigarettes on record, which is clearly being fuelled by excessive excise hikes.
In 2023, 19 per cent of cigarette packs held by smokers were illegal, and an additional 15 per cent were legal but non-Irish duty paid (duty-free purchased). This is the highest level of illegality and excise evasion recorded in this series of Revenue surveys since commenced in 2009.
Earlier this year, in its pre-budget submission, Retailers Against Smuggling (RAS) called on the Minister for Finance Jack Chambers TD and his Department to introduce tough and effective Budget measures that will curb the current level of smuggled goods entering the country and protect the industry.
According to RAS, excise increases are driving the trends towards illicit market activity when it comes to cigarettes. With prices on the black market reportedly as low €5-6, the latest excise increase threatens the business of local retailers, which has already drastically shrunk in recent years. With criminal gangs increasingly being linked to illicit cigarette sales, this excise increase rewards criminal gangs ahead of the interests of legitimate retailers.
By increasing the excise duty on tobacco by one euro, once again, the government has effectively thrown fuel on the fire, further driving consumers towards the illegal market and threatens the income of legitimate retailers.
Retailers Against Smuggling say the organisation is also extremely disappointed that once again the Department of Finance has decided to ignore warnings made in its own Tax Strategy Group papers of major tax losses from illegal cigarette trade. A review by RAS on the excise revenue received in the six years 2017-2022, shows that ahead of each budget, the Tax Strategy Group paper estimated over the six years that there would be cumulative additional receipts totaling €350 million. But, in reality, the actual revenue in that period fell from €1.397 million to €1.005 million, a €392 million shortfall.
It is especially disheartening considering that earlier this year, the former Minister for Finance Michael McGrath acknowledged in response to a parliamentary question that raising excise duties might be contributing to the growth of the black market. Yet, despite this recognition, the Government has chosen a course that will further worsen the situation and the losses to both legitimate retailers and the Exchequer.
In addition, the significant decrease in inflation acknowledged by Minister Chambers in his budget speech from 10% in 2023 to below 2% in 2024 was ignored when it comes to excise duty.
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Retailers Call For Budget 2025 To Tackle Ireland’s Smuggling Problem – Checkout.ie
July 05 2024
Retailers Against Smuggling (RAS) has this week called on the government to rethink its policy approach towards smuggling and illicit trade in Ireland ahead of the 2025 Budget.
The representative body for the retail sector met earlier this week at Buswells Hotel on Kildare Street, opposite Leinster House, to make the call on the government.
The pre-budget submission calls on the government to reduce or freeze consumer taxes including tobacco excise, increase funding for the detection and enforcement of smuggling, and amend the Finance Act to prosecute suspected smugglers at Circuit Court level or higher.
RAS has made the recommendations in light of a number of findings over the past two years.
Smuggling Figures
RAS says that the scale and surmounting magnitude of the problem is clearly illustrated by the numbers with the value of illegal cigarette smuggling on course to double in 2024.
In 2023, a total of 31 major seizures came to the value of €58 million, at a loss of €45 million to the exchequer.
In the first half of 2024 alone, there has been 27 major seizures worth a total value of around €53 million and a loss to the exchequer of €40 million.
A poll of over 1,000 Irish adults conducted earlier this year by Ireland Thinks on behalf of RAS found that illicit market activity is becoming more normalised among the Irish public.
The poll found that a quarter (25%) of all respondents have knowingly purchased some goods or services from an unofficial or irregular seller in the past 12 months.
A separate survey by Ipsos MRBI on behalf of the Revenue Commissioner found that in 2023, 19% of cigarette packs held by smokers were illegal, smuggled tobacco.
An additional 15% were legal but non-Irish duty paid.
This is the highest level of illegality and excise evasion detected by this series of annual Revenue Commissioner surveys since they commenced in 2009.
‘At Risk’
Commenting on the pre-budget submission, the spokesperson for RAS Seamus Griffin said, “Smuggling is a real issue, that is hitting us 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 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.”
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From dodgy boxes to illegal cigarettes: One in four Irish people say they buy black market products – Irish Independent
May 03 2024
Around a quarter of Irish people have bought black market products in the past year, according to a poll.
The findings highlight the widespread use of illegal black market products in this country. The unregulated and untaxed items being bought include dodgy box subscriptions, coal, drugs, medicines, alcohol, vaping products and cigarettes and rolling tobacco, according to the survey commissioned by representative body Retailers Against Smuggling.
The findings chime with a recent survey commissioned by the Revenue Commissioners which found that 19pc of cigarette packs held by the smokers surveyed were classified as illegal.
They were mostly what Revenue calls contraband – normal, commercial brands of cigarettes bought duty-paid or duty-free outside the country and smuggled in.
Retailers Against Smuggling commissioned a poll by Ireland Thinks of more than 1,500 people. It asked Irish consumers how often they bought products from illicit or unofficial sources.
A quarter of respondents said they had knowingly bought goods or services from an illicit source in the past 12 months. A total of 37pc of all those who bought cigarettes, tobacco or vapes in the past 12 months would be open to buying from unofficial or irregular sources if the price was substantially lower than the legal market price.
Meanwhile, 19pc of all those who bought cigarettes, tobacco or vapes in the past 12 months had knowingly bought them from an unofficial or irregular seller in that period.
In the first three months of this year, Revenue made 16 major seizures of tobacco across Ireland. The total value of seizures last year was €58m.
When it comes to so-called dodgy boxes, a separate recent Sunday Independent/Ireland Thinks poll found more than one in five people in Ireland now use them to watch TV shows.
The number of illegal streaming devices in households has doubled to almost 400,000 in the last five years, the figures suggest.
Up to 22pc of Irish households now use one of the connected boxes, which are sometimes activated through legitimate gadgets such as an Amazon Fire Stick.
The group called on the Government to begin tracking the seizures of illegal vapes to get a handle on the extent of this illicit market.
The 75c hike in excise in last October’s Budget pushed the average price of a pack of 20 cigarettes to €16.75, with rolling tobacco costing on average €23.30.
Prices on the black market are reportedly around €5 to €6, the retailer body said.
Coal bought from Northern Ireland has become a big issue. Solid Fuel Merchants Ireland said recently that “illegal coal” is being smuggled over the Border and sold online and door-to-door.
Solid fuel is generally cheaper in Northern Ireland because there is no carbon tax, a lower rate of Vat and the same quality standards do not apply, so there is no restriction on the sale or use of smoky coal.
The carbon tax on coal sold in this State went up this month by 75c per bag. A bag of coal currently costs around €5.85 in carbon tax.
Retailers Against Smuggling spokesperson Benny Gilsenan said his organisation’s survey showed there was a shadow economy operating under our noses that was being allowed to continue with impunity.
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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.
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Retailers Against Smuggling shocked at illegal cigarette factory operating in Dublin
Retailers Against Smuggling (RAS) welcomes the closure by Revenue officers of an illegal cigarette factory operating in the heart of Dublin
On Friday, February 23, Revenue officers discovered more than 1.4 tonnes of raw tobacco, all precursor components for the manufacture of cigarettes and approximately 758,000 illicit cigarettes branded “Marlboro”, which were ready for distribution. The value of the seizure is over €630,000, with a potential loss to the Exchequer of almost €500,000.
This illegal cigarette factory closure comes just days after Revenue seized 14.6 million cigarettes in Dublin, with a retail value of €12 million, and a potential loss to the Exchequer of approximately €9.6 million.
Commenting RAS national spokesperson Benny Gilsenan said: “We’re barely into the new year and Revenue have already found an illegal cigarette factory operating in our capital and a mammoth seizure of cigarettes. This issue has grown year and on year and unless we see drastic action, it’ll only get worse.
According to Revenue’s own figures, a third of the cigarettes in the country aren’t bought here, and last year was a record year for seizures with more than €66m in illegal cigarettes seized and €45m lost to Revenue.
Retailers are bearing the greatest impact of this, especially in the context of soaring energy prices and the increasing general cost of doing business in Ireland. We encourage business owners and the public to report any suspicious activity to Revenue so that we can tackle this criminality, protect minors and support local retailers.”
These recent events illustrate that illicit trade is continuing to grow in Ireland. RAS commends the ongoing work by Revenue in the fight against tobacco smuggling and illicit trade and encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact its confidential hotline. Free phone number 1800 295 295.
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Seizures of illegal tobacco jump 50% in one year
Total value of Revenue seizures of illegal tobacco in 2023 was €58m, up from €38.7m in 2022
According to their figures, Revenue has seized €58m worth of tobacco in 2023. The total figure for 2022 was €38.7m, representing a jump of 50% in the space of a year. In 2023, seizures represented a loss of €45.1m to the Exchequer, with more than 66.5 million cigarettes found by Revenue’s scanners and detector dog teams.
Illegal tobacco sales have soared over the past year with the issue now becoming a chronic challenge. Just in November, Revenue seized nearly 15m cigarettes in counties Dublin and Louth, with a total value of €12.5m.
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. RAS is calling for at least 30% of the funds collected from the licence fee to be ringfenced for initiatives that will meaningfully deal with the growth of smuggling activities in the country.
The recent 75c hike in excise in October’s budget pushed the average price of a pack of 20 cigarettes to €16.75, with rolling tobacco costing on average €23.30. With prices on the black market reportedly around €5-6, it threatens the business of local retailers which has already drastically shrunk in recent years.
A recent poll commissioned by RAS found that 33% of Irish smokers are prepared to purchase illegal tobacco, with that figure as high as 50% among 18-34 year olds. The representative body’s poll findings highlight the impact of Ireland’s record levels of illicit trade.
This poll confirmed Revenue’s findings (Illegal Tobacco Products Research Survey) that 30% of tobacco products consumed in Ireland are either illegal or Non-Irish Duty Paid. This showed a dramatic rise of 43% compared to 2021, and represented a loss to the Exchequer of €384 million last year.
RAS spokesperson, Benny Gilsenan, said: “We’ve gone past the tipping point – the black market already accounts for about a third of all tobacco in Ireland. With the way things are going we wonder how long until we see the black market take half of all the trade in Ireland away from honest retailers? With the extra tax raised the government must do more to strengthen Revenue’s hand and stop illegal tobacco coming into the country.”