RAS Blog

Category: Government News

  • Sale of Illicit Goods Bill 2017 To Be Debated in The Dáil Today

    Retailers Against Smuggling (RAS) has welcomed a debate due to take place in the Dáil this evening (17.20) on Fianna Fáil’s Private Members Bill the Sale of Illicit Goods Bill 2017. The Bill, which was introduced by Fianna Fáil TD for Louth/Meath East Declan Breathnach aims to create a deterrent to purchasing smuggled goods like cigarettes, alcohol and solid fuel which undercut Irish retailers. The Bill makes it an offence to purchase such goods from an unregistered or unlicenced retailer, provides for the imposition of a penalty in respect of such offences and provides for an on-the-spot fine in respect of such offences.

     

    The Bill is a significant step in combatting smuggling into Ireland which is a growing problem. Revenue’s Tobacco Survey 2017[1] revealed that 13% of all packs of cigarettes held in Ireland are illegal – this amounts to approximately 520 million cigarettes consumed. This represents a loss to the Exchequer of €229 million in 2017 alone. Revenue’s 2017 annual report showed that it also seized 95,021 litres of illicit alcohol with an estimated value of €0.91 million.

     

    RAS spokesman, Benny Gilsenan said “The issue of smuggling has grown more apparent than ever in 2018 so the timing of this Bill is significant. We saw the discovery of a massive cigarette factory in Louth this year, as well as two fuel laundering plants. With the recent tobacco excise increase in Budget 2019 and the smoky coal ban due to be implemented next year as well as a potential hike in carbon tax, the likelihood of an increase in tobacco and fuel smuggling over the border is extremely high.”

     

    Mr Gilsenan continued “This Bill will help protect small retailers by deterring the purchase of illicit goods. This goes some way to closing the gaping holes in Irish legislation that have existed until now and we hope that all members of Dáil Eireann will support it to protect our small and medium retail sector.”

     

    While RAS welcome the legislation, we also recognise that Revenue officials and An Garda Síochána need more resources to combat smuggling in the coming years.

     

    “Brexit has created a political atmosphere that will likely make cross-border smuggling more lucrative, with a fluctuating sterling and potential tariffs. The Bill ensures that a major gap in the legislation surrounding the illicit trade is closed – the next steps are to ensure that retailers and Revenue do not lose out on yet more money to criminals,” Gilsenan continued.

  • Retailers and the Exchequer suffer as over 520 million cigarettes bought illegally or brought from overseas

    25 April 2018

    Following the release of Revenue’s Annual Report 2017 and Ipsos MRBI Illegal Tobacco Products Research Survey 2017, Retailers Against Smuggling (RAS) is again calling on the Government to provide more resources to combat smuggling, particularly due to the uncertainty caused by Brexit.

    The published reports show a marked increase in the trade of illicit goods in Ireland. Ipsos MRBI Illegal Tobacco Products Research Survey 2017 found that approximately 520 million illegal cigarettes (26 million packs) were consumed in Ireland in 2017, representing a loss to the Exchequer of approximately €229 million. Revenue’s report also highlight the disparity between cigarette seizures and summary convictions: of the 4,493 illegal cigarette seizures in 2017, there were only 26 convictions.

    Small and medium-sized retailers’ trade is being undercut by smugglers, and the Revenue report reiterates the depth of the involvement of criminal gangs in smuggling of illicit tobacco in particular. RAS have repeatedly voiced their concerns about the impact of the introduction of a 30g minimum RYO pouch size in May 2017. Following the introduction of this minimum, Ipsos MRBI Illegal Tobacco Products Research Surveys 2017 found that the number of illicit RYO pouches held by smokers surveyed has almost doubled in the last year – jumping to 15% in 2017 from 9% in 2016.

    RAS spokesperson, Benny Gilsenan, commented: “Revenue’s statistics show once again that Ireland still has a huge problem with the illicit trade, which harms small retailers and strengthens criminal gangs. These activities put retailers out of pocket and are happening because of a lack of awareness of the impact smuggling has on retailers, as well as a paucity of investment in combatting it,” Mr Gilsenan remarked.

    Mr Gilsenan concluded: “RAS is calling for proper enforcement of the current legislation to ensure those who sell illicit products are met with the full force of the law. Retailers nationwide have paid all the relevant duties and taxes, and are missing out on revenue and footfall as a result.”

  • Fagan’s Law: Retailers Against Smuggling Welcome Move To Protect Children From Criminals

    8 March 2018

    Retailers Against Smuggling (RAS) has welcomed a new bill introduced by Fianna Fail’s Deputy Anne Rabbitte today, Wednesday. The Criminal Law Anne Rabbitte (Recruitment of Children to Engage in Criminal Activity) Bill 2018, more commonly referred to as Fagan’s Law, will make it an offence for an adult to recruit a child to carry out a criminal offence on his or her behalf.

    RAS spokesman Benny Gilsenan said: “Children are being recruited by criminals to sell smuggled cigarettes and other illegal products on streets and in markets all over the country. This is exploitation of children to commit serious crime and has to stop. RAS are welcoming this Bill which will protect these children, and once again highlight just how damaging smuggling is to communities and businesses in Ireland.”

  • 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.”

  • One in Three Retailers Along the Border Concerned that Brexit will Create a Bigger Market for Smuggling Along the Border.

    28th September 2017, Dublin

    A cross-border survey conducted by Retailers Against Smuggling (RAS) has revealed that one in three retailers in Ireland are concerned about the rise in criminality and illicit trade following the decision of the UK to leave the European Union last year. Responses from 114 retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with 101 additional retailers across Northern Ireland. The survey results come weeks after Minister for Foreign Affairs Simon Coveney declared that Ireland’s interests would be at the forefront during Brexit talks. Smuggling and illicit trading increases must remain an important factor for the Irish government during border negotiations.

    The results showed that of those surveyed in the border counties, one third of retailers feel Brexit will create a bigger market for smuggling in the county, while 44% have noticed a significant increase in smuggled products and illicit trade in recent years, particularly since Brexit. This figure rises to 56% of their counterpart retailers north of the border.

    One-third of all retailers surveyed believe that Brexit will lead to a further presence of the black-market along the border and significant losses to the Exchequer, as well as their own businesses.

    RAS spokesperson and small business owner, Benny Gilsenan said “when a customer doesn’t buy their cigarettes in my shop, that means they’re not buying their pint of milk, they’re not buying their sliced pan. It has a huge knock on effect on small businesses”.

    Retailers on both sides of the border can no longer compete with the illicit trade of smuggled products. In terms of illicit trade, cigarettes and loose tobacco are by far the most urgent concern for retailers. Mr Gilsenan continued “smuggling is a constant concern for us as retailers. A packet of cigarettes bought on the street costs the consumer less than half price of what they would pay in a shop. A legitimate retailer selling a packet of cigarettes for €11.50 simply cannot compete with a smuggled pack that costs just €5. The Government needs to protect legitimate Irish retailers from the consequences of illicit trade”

    According to Revenue’s Illegal Tobacco Products Research Survey 2016, 10% of cigarette packs in Ireland are classified as illegal and a further 8% are Non-Irish Duty Paid. In a report released by Grant Thornton in 2015 found that a key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products. Half of all Irish retailers surveyed believe that the key to undermining cross-border smuggling of tobacco and alcohol is to harmonize tax and price differentials between Northern Ireland and the Republic of Ireland.

    The survey also revealed a shocking lack of trust in authorities both north and south of the border, with only 13% of those surveyed having confidence in the ability of authorities to tackle smuggling. There is a massive disparity between alcohol seizures and summary convictions in Ireland. In 2016 there were 1,875 seizures of illicit alcohol in the country, but only four summary convictions. Border retailers indicated in the survey that they would like to see the purchasing of illicit goods to be made an offence. This provision was one of the key measures proposed under the Sale of Illicit Goods Bill, which made it an offense for a person to buy alcohol, tobacco or solid fuel from an unregistered retailer.

    A roundtable discussion was held yesterday in Dublin to tackle Brexit, the Border & the Black Market. The event was co-chaired by Kevin Doyle, Group Political Editor at the Irish Independent, and Allison Morris, Security Correspondent from the Irish News. Members of An Garda Siochana, the PSNI, HMRC and political parties from both the Republic and the North met to discuss the issues that retailers on both sides of the border will face in the coming months and years. “The people that attended this roundtable discussion are the ones who can make a real impact. Events like this need to happen more often, it’s so important to keep the conversation going between officials in the Republic and the North. We need to work together on this.” Said Mr Gilsenan.

  • Retailers call for Government consultation on making it an offense to purchase illicit products

    20 February 2017

    Retailers across the country are today calling on the Government to urgently consult with them on measures to tackle sales of illegal cigarettes and tobacco on Ireland’s streets. The UK revenue and customs, HMRC, last week launched such a consultation, with the focus in particular on repeat offenders. RAS note that we do not know the numbers of those who have been caught several times or more selling illicit products in Ireland. Following an informal targeted consultation in 2015, this new consultation is seeking views on four potential additional sanctions:

    • increasing financial penalties for repeat offenders
    • a new civil penalty for dealing in illicit tobacco
    • reducing the threshold for the publication of details of people or companies that deliberately evade duty
    • a statutory duty of care on landlords and landowners of properties or land

    Retailers Against Smuggling (RAS) Leinster spokesperson Benny Gilsenan welcomed the consultation: “The proposals in this consultation are prime examples of what can be done with minimal effort to help tackle illegal tobacco sales and protect the legitimate, tax-paying retailers of Ireland. While some of the proposals mentioned are already in place in Ireland, Retailers are being undermined day in day out by sellers of illegal tobacco and we have real solutions to help tackle this problem. Our views must not be pushed to the sidelines, so today we are calling on the Government to look at what their European counterparts are doing and launch a similar consultation on making it an offense to purchase illicit products here in Ireland”.

    The consultation also seeks views on the introduction of a new civil penalty for fiscal mark wrongdoings. Benny concluded: “RAS have been calling on the Government for the past number of years to make it illegal to purchase alcohol, solid fuel or tobacco products where the duty has not been paid. HMRC are already looking at where they can place this legislation, it is time the Irish Government listen to the legitimate retailers – with Brexit around the corner we need to protect tax-paying businesses from the impact of the growing black market”.

  • Dublin Retailers call on the Government to take action as criminal gangs profit from Christmas shoppers

    30th November 2016

    The seizure of over 661,00 illicit cigarettes over the course of the past week illustrates that criminal gangs set to profit from Christmas shoppers. The seizure of 600,000 cigarettes in Dublin Port and 61,000 cigarettes in Clonmel, reinforces how Ireland has become an international target for smugglers. The smuggling of counterfeit products is ever-increasing. Over 840,000 illicit cigarettes have been seized for the month of November alone and so far in 2016 the Exchequer has lost almost €17 million.

    Retailers Against Smuggling, an association representing almost 3,000 retail members in the fight against the black market in Ireland, are calling on the Government to make it an offence to purchase illicit alcohol, tobacco and solid fuel from an unregistered or unlicensed retailer. Currently there is no legislation in Ireland to deter people from purchasing illicit products. Retailers Against believe that introducing on-the-spot fines would encourage people to think before they purchase these illegal products, especially during the Christmas season.

    Benny Gilsenan, Chairman of Retailers Against Smuggling stated that: “With the excise on a box of cigarettes even higher this year, there is a real fear among legitimate retailers and especially small shop owners that their businesses will suffer this Christmas. Retailers want this to be a good Christmas, not a counterfeit Christmas. The smuggling of illicit products over the Christmas period is likely to increase. Illicit products are not only illegal, they are often highly dangerous. Shoppers must be careful if a deal looks too good to be true. The Government must take action and ensure that the small retailer does not become a thing of the past.”