RAS Blog

Category: illicit cigarettes

  • Record €128m In Illegal Tobacco Seizures In 2024 “Tip Of The Iceberg” – RAS | Checkout.ie

    Record €128m In Illegal Tobacco Seizures In 2024 “Tip Of The Iceberg” – RAS | Checkout.ie

    Retailers Against Smuggling calls on incoming government to tackle rising illicit trade

    January 29, 2025 12:00 PM

    Retailers Against Smuggling (RAS) have congratulated the Revenue Commission and Gardaí for their successes in seizing illegal tobacco, but warned that this is just the “tip of the iceberg.”

    The retail group has warned that the increase in seizures is simply a factor of the increase in illegal, non-duty paid tobacco in circulation in the state.

    RAS has now called on the new government to commit to tackling smuggling in Ireland.

    ‘Out Of Control’

    Headline figures released by the Revenue Commissioners show that Irish authorities seized €128 million worth of illegal tobacco in 2024, compared to €63 million in 2023.

    This means that the value of seizures doubled in just one year, based on figures from Revenue’s Headline Results Publications for 2023 and 2024.

    RAS national spokesman Benny Gilsenan, who is also a retailer on Dublin’s northside, said, “€128 million was only the tip of the iceberg.

    “Tobacco smuggling is out of control in Ireland. The country is being engulfed by a tsunami of smuggling.”

    The Revenue Commissioners published a survey in 2023 which found that some 34% of cigarettes in circulation in Ireland were non-duty paid.

    The 2024 seizures data suggests that illegal smuggling is particularly acute in the capital region, with 58% of all seizures in 2024 occurring in Dublin.

    ‘Posing Serious Risk’

    RAS has called for more resources to detect smuggling by organised criminal gangs, but it warned that the focus on large-scale seizures must also be matched by a new drive to tackle widespread non-compliance with duty-free travel allowance.

    A new survey from Ireland Thinks on behalf of RAS found that the proportion of all those purchasing cigarettes who bought them while abroad has increased from 45% to 58% between March and November 2024.

    This indicates a surging trend towards increased import of cigarettes in Ireland.

    Due to a lack of checks and enforcement at Irish ports and airports, passengers can walk through arrivals with thousands of non-paid cigarettes in their luggage.

    They can then illegally sell these smuggled cigarettes on the black market, taking business away from legitimate Irish retainers.

    The Irish exchequer, in turn, misses out on tax revenue.

    RAS have called on the new government to tackle the rising illicit trade in cigarettes, which it says is “posing serious business risks to small Irish retailers, from convenience stores and forecourts to local pharmacies.”

  • Ireland’s Cigarette Smuggling 63 million euro loss to the Exchequer – Meath Live

    Ireland’s Cigarette Smuggling 63 million euro loss to the Exchequer – Meath Live

    October 17 2024

    Retailers Against Smuggling (RAS) welcomes this week’s seizure by Revenue, of 8 million cigarettes in County Meath, as pictured above. This most recent seizure, with a retail value of almost 7.2 million, and a loss to the Exchequer of 5.7 million is the 33rd major illegal cigarette seizure of 2024. The total number of illegal cigarette seizures for last year was 31. RAS, an organisation which represents over 3,000 retailers across Ireland are urgently calling on the government to reduce or freeze taxes which impact the price of consumer goods, including a freeze on tobacco excise. Ireland has one of the highest rates of illegal tobacco trade in Europe. Illegal tobacco poses great risks to consumers and businesses, undermines anti-smoking and public health campaigns, is a significant source of organised crime and violates state rules on manufacturing, distribution and sale.

    So far this year, 85.4 million cigarettes have been seized by Revenue, with a total retail value of 81.7 million euros, a loss of 63 million euro to the Irish Exchequer. In terms of losses to the Irish Exchequer, August figures took this year’s figures past last year’s total. It is only October and with three remaining in the year, already the loss to the Exchequer is 18 million greater than last year. According to Tax Strategy Group papers 2 which were recently published ahead of the Budget 2025, an increase of 50 cents in excise on a pack of 20 cigarettes would theoretically bring in €40.6 million. However, the Tax Strategy Group papers also note the notional loss to the exchequer from non-Irish duty paid cigarettes and illicit cigarettes was approximately €422 million in 2023.

    Retailers Against Smuggling was extremely disappointed with the Government’s decision to increase excise on tobacco in Budget 2025, as 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.

    Retailers across Ireland have for years, been cautioning government that the continual increasing of excise will only fuel illegal cigarettes sales resulting in increasing losses, not gains, to the Irish exchequer.
    This has been proven to the case over recent years. A review by RAS of 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 decline.
    Given the tsunami of cigarette smuggling which has engulfed Ireland in 2024, further excise increase will only exacerbate the losses to the exchequer, while also causing significant loss in sales for legitimate
    retailers across Ireland, many of whom are small businesses already struggling.

    In terms of operational activities to tackle the illicit trade in tobacco products, robust enforcement plays a central role. This is primarily the task of Revenue. Retailers Against Smuggling (RAS), are also calling on
    a pressing need to increase funding in Budget 2025 for resources that will detect illicit market activity including x-ray scanners, airport inspections and sniffer dog units.

  • 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. 

  • 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.

  • Retailers Against Smuggling shocked at illegal cigarette factory operating in Dublin

    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.  

  • New poll: Half of 18-34 year olds willing to purchase illegal tobacco

    New poll: Half of 18-34 year olds willing to purchase illegal tobacco

    Survey confirms Revenue findings that a third of tobacco products in the country are illegal or non-Irish Duty Paid

    33% of Irish smokers are prepared to purchase illegal tobacco, according to a new poll commissioned by Retailers Against Smuggling. The representative body’s poll findings highlight the impact of Ireland’s record levels of illicit trade.

    This poll confirms 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. 

    The poll, carried out by Ireland Thinks, between the 21st and 25th of September, looked to gauge people’s willingness to purchase illegal tobacco. The poll also sought to understand what the appetite was among the panel surveyed to report those selling illegal tobacco to the relevant authorities. 

    The main findings of the poll include:  

    • 33% of smokers would purchase illegal tobacco
    • 50% of those aged 18-34 would purchase illegal tobacco – the highest among all of the age cohorts
    • Only 13% of those aged 65+ would do the same – the lowest among all of the age cohorts 
    • 70% of smokers said they would not report illegal tobacco sellers if they encountered them. This figure was highest among students with 94% saying they wouldn’t report illegal tobacco sellers, and it was also high among those in full time employment at 79%. Only 48% of retirees said they wouldn’t report illegal tobacco sellers. 

    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 non-Irish duty paid 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 another major seizure of 10 million cigarettes on June 9, showing the size of the illegal tobacco market in Ireland.  

    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. 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 contraband being smuggled into the country and so meaningful resources are desperately needed against this backdrop.

    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 and lack of enforcement at our borders. With one of the highest prices for tobacco in Europe you can see why Ireland has become a destination for criminals to sell tobacco. This new licence fee will put a strain on already squeezed retailers. Government must use at least a third of this money to help protect us against the black market, and support Revenue with more scanners and personnel at entry points across the country.” 

    The survey sample size was 1,060; with a margin of error: +/- 3.1 per cent

  • New Poll: 76% of people will not report illegal tobacco sales

    New Poll: 76% of people will not report illegal tobacco sales

    One-third of Irish smokers prepared to purchase illicit tobacco 

    A new poll, commissioned by representative body, Retailers Against Smuggling, has demonstrated the resilience of the illegal tobacco trade in Ireland; with a staggering 76% of people surveyed stating they would not report illegal tobacco sales and 32% percent of smokers prepared to purchase illegal tobacco.  

    The poll*, carried out by Ireland Thinks, between 5th and 6th of May, looked to gauge people’s willingness to purchase illegal tobacco. The poll also sought to understand what the appetite was among the panel surveyed to report those selling illegal tobacco to the relevant authorities. 

    The main findings of the poll include:  

    • 61% of those aged 18-34, said they would purchase illegal tobacco.  
    • The intention to purchase illicit tobacco is significantly higher among males (39%) when compared to females (24%) 
    • 12% of those aged over 65 are prepared to purchase illegal tobacco –the lowest among all of the age cohorts 
    • 76% reported that they wouldn’t report illegal tobacco sellers if they encountered them. Again this figure was highest among 18-34 year olds (88%), and lowest among the over 65 cohort (41%).  

    The Public Health (Tobacco and Nicotine Inhaling Products) Bill, published last week, 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. RAS proposes that 30% of the funds collected from the licence fee are ringfenced for initiatives that will meaningfully 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 non-Irish duty paid 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 another major seizure of 10 million cigarettes on June 9, showing the size of the illegal tobacco market in Ireland.  

    The results of the Retailers Against Smuggling poll are in line with recent research from Revenue. The Illegal Tobacco Products Research Surveys 2022 found that 30% of all cigarette packs held by smokers in the country were found to be classified as illegal or Non-Irish Duty Paid, a jump of 43% from the previous year. Revenue’s research estimates that the loss to the Exchequer was a record €384 million in 2022.  

    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 and lack of enforcement at our borders. Travel limits are poorly enforced, and our 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.” 

    *The sample size of the poll was 1,147, with a margin of error at +/- 2.9%. 

  • Seizures of over 6,000kgs of tobacco at Dublin Port welcomed by Irish retailers

    Seizures of over 6,000kgs of tobacco at Dublin Port welcomed by Irish retailers

    Retailers Against Smuggling (RAS) welcomes the announcement (23.02.23) by Revenue of the major seizure at Dublin Port of approximately 6,000kgs of tobacco and 2,400 cigarettes on the 15th February and 12.3kgs of tobacco on the 20th February, worth a combined estimated retail value of over €4.5 million, showing a potential loss to the Exchequer of over €3.5 million. This is the third seizure so far this month and is yet another first-hand indicator of an exceptionally active black market and the scale of tobacco smuggling in Ireland.

    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.

    RAS encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact Revenue’s confidential hotline. Free phone number 1800 295 295.

  • Seizure of 10 million cigarettes at Rosslare Europort welcomed by Irish retailers

    Seizure of 10 million cigarettes at Rosslare Europort welcomed by Irish retailers

    Retailers Against Smuggling (RAS) welcomes yesterday’s major seizure of 10 million cigarettes at Rosslare Europort. The seizure had an estimated retail value of €7.9 million, representing a potential loss to the Exchequer of almost €6.2 million.

    This is the largest cigarette seizure by Revenue so far this year, demonstrating that the illicit tobacco trade is continuing to grow in Ireland. This seizure shows that the cost-of-living crisis is driving demand for black market products, which retailers are being forced to compete with while facing a challenging winter of rising energy bills and soaring inflation. 

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports. RAS encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact Revenue’s confidential hotline. Freephone 1800 925 925.

  • Surge in tobacco seizures points to booming illicit trade as retailers face uncertain winter

    Surge in tobacco seizures points to booming illicit trade as retailers face uncertain winter

    Retailers encouraged to report suspicious trade of illicit cigarettes and tobacco to Revenue

    A significant spike in cigarette and tobacco seizures by Revenue in October signals the threat of smuggling activity is stronger than ever for registered and legitimate retailers. That’s according to Retailers Against Smuggling (RAS) who call on business owners and the public to report suspicious trade of illicit cigarettes and tobacco in their locality.

    The combined estimated retail value of cigarette and tobacco seizures announced by Revenue and An Garda Síochána so far this month is over €8.1 million.

    Commenting, RAS national spokesperson Benny Gilsenan said: “In 2021 the notional loss to the Exchequer on the 22.7 million illegal cigarette packs consumed in Ireland was €264 million according to Revenue. However, retailers are bearing the greatest impact of this as consumers are forced to source cheaper product from the black market for which there is a spiralling growth in demand. Not only are retailers losing out on tobacco sales, but more importantly they are hit by the lost sales of additional products consumers might purchase had they called into store.

    “This comes as the retail sector faces a challenging winter ahead to keep stores viable due to soaring energy prices and the general cost of doing business rapidly increasing. At the same time, organised crime gangs are making huge profits from the growth in demand for cheaper tobacco products. We are seeing first-hand how large consignments of illicit cigarettes and tobacco are trickling their way down into communities across Ireland to small time criminals who are often selling to minors.

    Mr Gilsenan added: “We encourage business owners and the public to play a role in tackling this criminality, protecting minors, and supporting local retail trade by reporting suspicious activity to Revenue. Information on the ground like this is incredibly valuable to Revenue for building a full picture of illicit tobacco trade in Ireland. This intel ensures Customs Officers can identify the supply lines between small time sellers and the major crime gangs bringing large consignments into the country, leading to the type of major seizures we’ve seen this month.”

    Anyone with information on the sale or supply of illegal cigarettes and tobacco can contact Revenue’s confidential hotline. Freephone 1800 925 925.