RAS Blog

Blog

  • 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.

  • Retailers Against Smuggling Reveal 25% of Irish People Bought Products Off the Black Market – Checkout.ie

    May 02 2024

    A quarter of Irish people have purchased items on the black market in the last year according to a new poll by Retailers Against Smuggling (RAS).

    The findings by the representative body highlight the widespread use of illegal black market products in Ireland.

    Some of the products purchased include TV subscription services, coal and other fuels, medicines, supplements, alcohol, vaping products, cigarettes and tobacco.

    Cigarettes And Tobacco Products

    The poll of more than 1500 people carried out by Ireland Thinks asked consumers how often they purchase items from unofficial sources.

    Included in the main findings is that 25% of the population have knowingly purchased goods or services from an illicit source in the past 12 months.

    It also found that 37% of those who purchased cigarettes, tobacco or vapes in the past 12 months would be open to buying them from an unofficial source if the price was substantially lower than the legal market price.

    The report said that 19% of all who had bought cigarettes, tobacco or vapes in the past 12 months have knowingly purchased them form an irregular seller within that time frame.

    In the first three months of 2024, Revenue have made 16 major seizures of tobacco, representing €39 million.

    The total value of seizures in 2023 was €58 million.

    A survey carried out by Ipsos MRBI revealed that the conjectured estimated loss to the Exchequer on 32.9 million illegal cigarette packs, including rolling tobacco packs, is approximately €442 million.

    The government does not currently track seizures of illicit vapes, and RAS has stated it believes this to be a growing problem.

    ‘Drastic Measures’

    Last October’s government budget saw an increase in the price for tobacco products.

    With the average cigarette pack now costing €16.75 and rolling tobacco costing on average €23.30, black market prices of €5-€6 threaten local retailers.

    Speaking about the results of the survey, RAS spokesperson Benny Gilsenan said, “It’s no surprise that these products are being sold all over the country, but their prevalence is shocking.

    “We’ve seen the illegal cigarette trade skyrocket in recent years and the same will happen for alcohol, fuels and medicines if drastic measures aren’t taken immediately.”

  • 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.

  • 1 in 4 Irish people have bought products from the black market in the last year 

    1 in 4 Irish people have bought products from the black market in the last year 

    A fifth of smokers are buying untaxed and unregulated vapes, cigarettes and tobacco from illicit sources 

    Dublin, Ireland – April 8

    A quarter of Irish people have purchased black market products in the past twelve months, according to a new consumer poll, commissioned by representative body, Retailers Against Smuggling. The findings highlight the widespread use of illegal black market products in Ireland – with 1 in 4 consumers buying unregulated and untaxed items including TV subscription services (dodgy boxes); coal and other fuels; drugs, medicines and supplements; alcohol; vaping products; and cigarettes and rolling tobacco. 

    The poll of more than 1500 people, carried out by Ireland Thinks, asked Irish consumers how often they purchased products from illicit or unofficial sources. The main findings of the poll include: 

    • 25% of the population have knowingly purchased goods or services from an Illicit source in the past 12 months. 
    • 37% 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. 
    • 19% of all those who bought cigarettes, tobacco or vapes in the past 12 months have knowingly purchased them from an unofficial or irregular seller in that period. 

    In the first three months of 2024, Revenue have made 17 major seizures of tobacco across Ireland representing a value of €43.6m and a loss to the Exchequer of €34m. The total value of seizures in 2023 was €58m.  

    Last year, the Health Products Regulatory Authority (HPRA) seized 900,000 dosage units of falsified and illegal medicines, which included sedatives, anabolic steroids. 

    Currently, the government doesn’t track seizures of illicit vapes, and RAS believes this issue to be a growing problem with the pervasiveness of non-compliant and illegal vapes on sale that do not meet regulatory specifications. Retailers Against Smuggling call on the government to begin tracking seizures of illegal vapes so we can fully understand the extent of this illicit market.  

    The 75c hike in excise in last October’s Government 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. 

    RAS spokesperson, Benny Gilsenan, said: “It’s no surprise that these products are being sold all over the country, but their prevalence is shocking. This shows that there is a shadow economy operating under our noses and is allowed to continue with impunity. We’ve seen the illegal cigarette trade skyrocket in recent years and the same will happen for alcohol, fuels and medicines if drastic measures aren’t taken immediately. Despite the great work of Revenue, they are obviously underequipped to properly combat the illicit market.” 

  • 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.  

  • Seizures of illegal tobacco jump 50% in one year

    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.”

  • 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

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

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

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

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

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

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

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

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

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

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

  • 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.” 

  • 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%.