RAS Blog

Category: Government News

  • Only three scanners available to monitor all the country’s ports 

    Only three scanners available to monitor all the country’s ports 

    Revenue under resourced to check the 1.2m freight vehicles that enter Ireland every year 

    The Minister for Finance Michael McGrath has stated that there are only three mobile scanners available to Revenue for scanning containers coming into the country’s ports. While the mobile units can be deployed to any port or warehouse throughout the country, these resources lack the capacity to adequately monitor the 1.2 million freight vehicles and trailers passing through just the three main Irish ports in 2022. The Minister also stated that Revenue currently operates twenty-three Detector Dog teams, previously quoted as running at a cost of €40,000 per unit per year. 

    The Public Health (Tobacco and Nicotine Inhaling Products) Bill will introduce a new licensing system which will add a further unnecessary administrative burden and cost on retailers, without addressing a huge underlining issue. Illegal tobacco, some of dubious origin continues to enter Ireland in huge amounts. Retailers Against Smuggling (RAS) proposes that 30% of the funds collected from the licence fee are ringfenced for initiatives that will deal with the growth of smuggling activities in the country. 

    Illegal tobacco sales have soared over the past year with the issue now becoming a chronic challenge. With the increase in international travel and increased smuggling, Ireland’s streets are awash with illicit tobacco.  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.  

    National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It’s no surprise that the illegal cigarette trade has grown in recent years following a cost-of-living crisis. Border agencies don’t have the resources required to fight smuggling at our ports and airports. With the one of the highest prices for tobacco in Europe you can see why Ireland has become a destination for criminals to sell tobacco. We can see from these figures that Revenue needs all the support it can get, we must add more scanners and personnel at entry points across the country.” 

  • Nearly one third of Irish smokers don’t pay Irish duty

    Nearly one third of Irish smokers don’t pay Irish duty

    Rates of illegal cigarettes in 2022 jumped by 43% compared to the previous year, costing the Exchequer a record €384 million in 2022

    Retailers Against Smuggling (RAS) has expressed grave concerns over the shocking increase in tobacco smuggling in Ireland, as highlighted in statistics published today (26 April) by Revenue / IPSOS.

    In 2022, 30% of all cigarette packs held by smokers in the country were found to be classified as illegal or Non-Irish Duty Paid (NIDP), representing a significant increase from 21% in 2021. The estimated loss to the Exchequer on 31.7 million illegal cigarette packs is approximately €384 million (in excise and VAT), and an additional loss of €120 million compared to 2021.

    17% of all cigarette and roll your own packs in Ireland have been found to be illegal. This is a marked increase from 13% in 2021. A further 13% of cigarette packs and 10% of roll your own packs have been found to be legal but Non-Irish Duty Paid; up from 8% and 5% respectively, from 2021.

    Ipsos released today the results of its annual Illegal Tobacco Products Research Surveys 2022. Market research company Ipsos conduct independent surveys of smokers each year for Revenue and the HSE’s National Tobacco Control Office.

    With Ireland ranked as the most expensive country in Europe to purchase duty paid tobacco products, consumers are taking advantage of the option to purchase cheaper products outside the State while travelling and bringing it back. Importantly, the re-introduction of Duty Free on air and sea routes between Ireland and the UK after Brexit has resulted in a rapid decline of legitimates cigarette sales in the Irish market.

    Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said: “It’s no surprise that the illegal cigarette trade has grown following the introduction of the new Duty-Free area with the UK. Travel limits are poorly enforced at borders and this is clearly reflected in the significant jump in 2022. Add to that the fact that Ireland is a destination market for criminals to sell tobacco and you can begin to understand the shockingly high level that Revenue is reporting for 2022. It’s the legitimate retailers and the Exchequer that are losing out.”

    Notes to editors:

    • National spokesperson for RAS, Benny Gilsenan is available for media interview upon request.
    • The Revenue 2022 Tobacco Products Research Survey can be accessed here.
    • The Revenue 2022 Annual Report can be accessed here.

    About Retailers Against Smuggling

    Retailers Against Smuggling (RAS) represents over 3,000 small and medium-sized retailers across the country. RAS aims to generate widespread awareness amongst the public, media and decision-makers of the impact that smuggled alcohol, tobacco products and solid fuel has on both the livelihoods of local legitimate retailers and consumers in Ireland.

    For more information about RAS, visit www.retailersagainstsmuggling.ie.

  • Ending reductions in excise duty will increase black market activity 

    Ending reductions in excise duty will increase black market activity 

    Inflationary pressures will drive people to seek cheaper, illegal alternatives 

    Retailers Against Smuggling (RAS) has today expressed grave concern that the phasing out of the reduced rate of excise duty on fuels will only serve to increase black market activity. The measures were announced today (Tuesday 21 February) by Government as part of its new cost-of-living package.  

    Measures agreed at Cabinet will see petrol, diesel and marked gas oil prices rising gradually between June and October. According to AA Ireland, petrol was €1.65 per litre in February or 2.5 per cent higher than January 2023 on average. The organisation contends that the reintroduction of excise duty on petrol will result in a €10 increase per tank of fuel. 

    RAS warned that a phasing-out of excise duty reductions is likely to lead to increased smuggling and laundered fuel. The representative body asserts that high inflation has provided new opportunities to criminal gangs to profit from black market operations. This contention is borne out by the fact in 2022 alone, 47,993 litres of marked fuel oil was seized by Revenue officers.  

    RAS spokesman, Benny Gilsenan, said “With inflationary pressures affecting many households, some will be incentivised to look to alternative means of acquiring fuel, which regrettably does not comply with the law. Where this has occurred in the past, RAS has observed a significant spike in cross-border smuggling. This damages legitimate businesses, local jobs and ultimately the Irish Exchequer”.  

  • Retailers warn cost-of-living crisis is not the right time for further excise increases

    Retailers warn cost-of-living crisis is not the right time for further excise increases

    Widening the gap between price of duty paid tobacco vs what’s available on the black market coupled with cost-of-living is creating unfair competition and financial loss for legitimate retailers

    Any additional excise increases on tobacco products in Budget 2023 will drive hard-pressed consumers to the black market as they grapple with the soaring cost-of-living. That’s according to Retailers Against Smuggling (RAS), who have outlined how Ireland remains a key target for crime gangs taking advantage of a rapidly growing illicit tobacco market.

    Commenting on the organisation’s Budget submission to Minister Paschal Donohoe TD, RAS national spokesperson, Benny Gilsenan explained how further excise increases would directly impact both the retail sector and Exchequer.

    He said: “RAS members are witnessing first-hand how the skyrocketing cost-of-living is forcing Irish consumers to make radical decisions on how and where they spend hard-earned income. For many, the black market has for the first time become the only realistic option for purchasing high excise items such as alcohol, solid fuel, and tobacco products.

    “Year-on-year excise increases on tobacco products in particular have resulted in them becoming an exceptionally lucrative commodity for organised crime gangs. A record year for cigarette and tobacco seizures by Revenue in 2021 shows the extent to which sophisticated criminals are taking advantage of household cost-of-living pressures and rapidly growing demand for the black market in Ireland. A trend which RAS members have seen continue to escalate throughout 2022 as the crisis deepens.”

    Mr Gilsenan added: “In the context of spiralling costs and a challenging operational environment ahead, Budget 2023 must avoid any measures which will negatively impact key revenue streams for retailers including an excise hike on tobacco products.”

    Enforcement of tobacco allowances for travellers coming into Ireland

    RAS has also called on Government to ensure ports and airports are adequately resourced to fully enforce the permitted personal allowances that can be brought into Ireland on non-Irish duty paid products. In 2021, 21% of all cigarette packs and 18% of all roll-your-own tobacco packs held by smokers in Ireland were found to be classified as illegal or non-Irish duty paid according to Revenue’s Tobacco Products Research Survey.

    Mr Gilsenan continued: “A full return to international travel this year and the reintroduction of duty-free shopping between the UK and the EU following the end of the Brexit transition period are also having a significant impact on Irish retail tobacco sales. With Ireland ranked as the most expensive country in Europe to purchase duty paid tobacco, consumers are understandably taking advantage of the option to purchase cheaper product outside the State while travelling and bringing it back.

    “To protect key revenue streams for both retailers and the Exchequer, it is critical that ports and airports are adequately resourced to ensure the permittable allowances set out by Customs for bringing non-Irish duty paid products into the country are fully enforced. Retailers are concerned that these allowances are being exceeded with individuals bringing in much larger quantities than what is permitted for personal consumption or to pass on to friends and family.”

    Download the RAS Pre-Budget Submission 2023 here.

  • Retailers’ welcome latest Revenue seizure of 1.5 million illicit cigarettes in Co. Meath

    Retailers’ welcome latest Revenue seizure of 1.5 million illicit cigarettes in Co. Meath

    Retailers Against Smuggling (RAS) welcome the seizure of 1.5 million illicit cigarettes at a premises in Co. Meath. The seizure had an estimated retail value of €1.1 million, representing a potential loss to the Exchequer of approximately €919,000.

    This latest announcement by Revenue validates retailer concerns of a highly functioning black market which legitimate Irish retailers are forced to compete with. Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said, “This seizure of illicit cigarettes indicates that the market is alive and well. As retailers across the country are struggling to adapt to the rising cost of doing business, seizures like this tell us that it is very much business as usual for the organised crime gangs behind smuggled tobacco products.”

    RAS commends the ongoing work by Revenue officials in the fight against smuggling. However, the issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

  • Retailers’ welcome seizure of 9 million cigarettes at Dublin Port

    Retailers’ welcome seizure of 9 million cigarettes at Dublin Port

    Retailers Against Smuggling (RAS) welcome the announcement by Revenue regarding the seizure of 9 million cigarettes at Dublin Port on Friday, 13th May. The seizure had an estimated retail value of €6.8m representing a potential loss to the Exchequer of more than €5.3m.

    This the tenth major cigarette and tobacco seizure announced by Revenue so far this year, is the largest to date. With over 16.4 million illegal cigarettes seized so far in 2022, this latest announcement by Revenue reaffirms retailer concerns of the continuation of a rapidly growing black market which Irish they are forced to compete with.

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports. However, the issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

  • Retailers feel impact of record year for large-scale tobacco smuggling

    Retailers feel impact of record year for large-scale tobacco smuggling

    Increase in large seizures of illicit tobacco and cigarettes points to lucrative black market for organised crime gangs

    A significant spike in major seizures of cigarette and tobacco products in 2021, suggests that the black market being exploited by crime gangs is more lucrative than ever. That’s according to Retailers Against Smuggling (RAS) reflecting on one of the busiest years for Revenue which announced 57 major tobacco seizures over the past 12 months, 14 of which had an estimated retail value of over €1 million.

    Commenting on the impact felt by registered and legitimate retailers, National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “The sheer magnitude of seizures reported by Revenue this year vindicates our concerns that tobacco smuggling is on a sharp rise. This is resulting in a rapidly growing black market which retailers like myself simply cannot compete against. It’s clear that criminal gangs are taking advantage of the tidy profits that can now be made from illicit tobacco while undercutting legitimate retail prices. The large consignments we’re seeing seized, primarily at our major ports, is just the tip of the iceberg.  We know that the majority of illicit product being smuggled into the country is finding its way onto the black market hitting the bottom line of registered retailers.”

    A RAS analysis of Revenue announcements made via press release in 2021 vs 2020 shows:

    • A total of 57 major seizure announcements were made in 2021, up 24.
    • 14 of these seizures were valued over €1 million, up four.
    • Over 50.2 million cigarettes were seized, up 2.1 million from last year.
    • Over 35.5 tonnes of loose and roll your own tobacco was seized, up 28.4 tonnes.
    • 28 major seizures were made at Dublin Port and Rosslare Europort, up 15.
    • The total estimated retail value of seizures to date is over €57.1 million, up €24.4 million.

    Organised crime gangs behind tobacco black market activity

    Mr Gilsenan continued: “The discovery of 906kg of tobacco linked with last month’s €9.8m drugs seizure at Dublin Port clearly indicates the type of organised crime gangs behind large-scale tobacco smuggling. We continue to argue that the current Government policy of placing annual excise increases on tobacco products is making illicit tobacco trade a more lucrative and appealing market for these gangs. This is further fuelled by growing consumer demand as smokers are forced to turn to the black market due to duty paid tobacco products sold by registered retailers becoming too expensive.

    “There is growing apprehension among the retail community that the financial incentives for gangs bringing product onto the black market now far outweigh any risks. For example, other than the possibility of the product being detected and seized, there appears to be no obvious deterrents such as meaningful court prosecutions which might make criminals think twice about smuggling large-scale illicit tobacco consignments into the country. We can also be sure that criminal gangs account for in advance the projected percentage loss associated with the detection and seizure of product.”

    Detection and prevention key to stemming tobacco smuggling

    Mr Gilsenan concluded: “At the same time we must fully commend the work undertaken by Revenue and Customs officers this year to yield such an increase in large-scale seizures, particularly at our major ports. It’s also encouraging to see continued investment in technology like the state-of-the-art mobile x-ray container scanner deployed at Rosslare Europort, to help officers successfully detect illicit product. These detection efforts are critical in stemming supply into the black market, protecting both the Exchequer and registered retailers.

    “However, until key individuals behind these crime gangs are targeted and handed appropriate prosecutions, they will continue to find more sophisticated means to smuggle large shipments of illicit tobacco. Financially, tobacco smuggling has now become a core pillar of the business models for these gangs. As a preventative approach at Government level, greater focus needs to be placed on delivering robust prosecutions and in turn strengthening the deterrent to engage in tobacco smuggling.

  • Excise increases on tobacco will push consumers to growing black market, retailers warn

    Excise increases on tobacco will push consumers to growing black market, retailers warn

    Attachment orders required to make deterrents to smuggle tobacco more robust

    Continuous excise increases on tobacco are driving Irish smokers towards a growing black market, fuelling significant growth in smuggling activity. That is according to Retailers Against Smuggling (RAS), who have outlined why Budget 2022 should not increase excise on tobacco products considering the unfair ‘competition’ legitimate retailers face from criminal gangs exploiting the demand for illegal tobacco products.

    Commenting on the organisation’s Budget submission to Minister for Finance, Paschal Donohoe TD, national spokesperson for RAS, Benny Gilsenan said: “An excise increase on tobacco products in Budget 2022 will only serve to further damage an already weakened retail sector and will provide increased opportunity for large-scale smuggling and ant smuggling of tobacco products.

    “The policy informing Budget 2022 must account for the need to create a sustainable, flourishing, and legitimate retail sector as we emerge from the pandemic. As retailers, we continue to compete with a very active black market in tobacco products which accounts for 15% of all cigarette packs in Ireland not to mention the 9% of cigarette packs smoked which are bought in from other jurisdictions.”

    Retailers concern around return of ant smuggling

    Mr Gilsenan added: “There is genuine concern amongst retailers that increased demand for the black market spurred by excise increases will lead to an accelerated return of ant smuggling as international travel resumes. Ant smuggling is typically carried out by smugglers travelling on low-cost airlines to purchase cigarettes in countries where it can cost as little as €2 for a pack of 20 cigarettes.

    “Ant smugglers are bringing tobacco products back into Ireland for sale on the streets for less than half of the Irish retail price, making it impossible for legitimate retailers like myself to compete. We have already witnessed eight significant tobacco seizures by Revenue at our airports so far this year and any increase in excise duty in Budget 2022 will only push more of the public to take advantage of this illegal option that bypasses the local shopkeeper and damages revenues to the State.”

    Attachment orders required to make smuggling deterrents more robust

    Only 55 cases of illicit tobacco trade resulted in prosecution throughout 2020 which is in direct contrast to the high volume of illicit cigarettes and tobacco seized by Revenue over the same period valued at over €37m. The scale of the problem was further emphasised last week with three major tobacco seizures by Revenue at Dublin Port valued in excess of €11.1m.

    Mr Gilsenan concluded: “The lack of prosecutions versus the volume of illicit cigarettes, indicates that the deterrents for the sophisticated criminal gangs and small-time criminals behind the black market are ineffective, with potential profits outweighing any penalties that might be imposed. Budget 2022, in the context of excisable goods, should focus on rendering existing enforcement regulations more robust by introducing attachment orders to violations, thereby providing the means to the State to recoup losses to the Exchequer driven by smuggling. Recent large-scale cigarette and tobacco seizures in the summer of 2021 point to criminals getting ready to compete aggressively with legal retailers in Ireland. Let’s not give them that opportunity.”

    Download the Retailers Against Smuggling Pre-Budget 2022 Submission here

  • 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.”

  • ZERO seizures of illicit solid fuel in 2019 despite growth in black market

    5 April, Dublin

    Retailers, suppliers and manufacturers of solid fuel in Ireland are outraged today following a response to a parliamentary question from Minister for Finance Paschal Donohoe last week. Fianna Fáil Deputy Jim O’Callaghan asked the Minister about seizures of smuggled solid fuel to date in 2019 to which Minister Donohoe stated that there have been none.

     

    Managing Director of CPL Fuels Niall McGuinness said “the fact that there have been no seizures this year is completely unacceptable. Manufacturers, suppliers, retailers and the dogs in the street know that solid fuel is being illegally sold all over the country. The Minister’s response is extremely worrying for the entire supply chain, we need support from the Government especially as Brexit is fast approaching”

     

     

    Large quantities of cheap, non-SFTC (Solid Fuel Carbon Tax) paid solid fuel is being sold illegally and in plain sight as far away from the border as County Kerry. Solid fuel can represent up to half of some retailers’ turnover, particularly in the Winter months.  Due to the stark differences in tax policies on both sides of the border, 26 tonnes of coal (one truck load) is €2,217 more expensive in the Republic of Ireland than in Northern Ireland. Based on our calculations, carbon tax evasion alone at 20% results in an estimated loss of €9.6 million to the State. The amount lost to retailers at this rate is even more staggering at €36.5million a year.

     

    The Minister also stated that just €640,000 in lost revenue from SFTC has been recovered out of a potential €9.6 million year on year loss. Mr McGuinness concluded “this is simply not good enough. Not only are we losing out on sales, the Exchequer is losing out on receipts. Pair that with the fact that the fuel coming over the border is smoky coal and bad for the environment. It is the Irish public that are ultimately paying the price.”

     

    Currently there is no deterrent to purchasing smuggled goods as it is not a crime. Retailers Against Smuggling supports the Sale of Illicit Goods Bill which aims to deter people from buying illicit alcohol, solid fuel and tobacco by introducing on-the-spot fines for buying goods where taxes have not been paid. This bill is a necessary measure to protect small Irish retailers.

    – ENDS –