RAS Blog

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  • RAS welcomes RCPI call for more anti-smuggling funding

    Retailers Against Smuggling have welcomed a call from the Royal College of Physicians of Ireland for extra funding to be made available for anti-smuggling measures in their Budget 2020 submission published this week. RAS spokesperson Benny Gilsenen said “We agree with the RCPI that additional funding should be made available for anti-smuggling measures. RAS have asked for extra funding for Revenue and the Gardaí year on year. This year is especially important with Brexit due to happen at the end of October and still no deal in place. Government also needs to recognise the significant increase in the illegal trade of Roll Your Own (RYO) tobacco, which has more than doubled in the last two years.”  RAS are calling on the government to increase spending on anti-illicit trade measures and to freeze any further excise hikes on tobacco products until the situation is under control.

    Note to the editor:

    • Ipsos MRBI’s Illegal Tobacco Products Research Survey 2018 that there was no decrease in the level of illicit cigarettes in Ireland with the figure for illegal packs remaining at 13%, and non-Irish duty paid (NIDP) at 9%. The survey found that approximately 453 million illegal cigarettes (23 million packs) were consumed in Ireland in 2018, representing a loss to the Exchequer of approximately €211 million.
    • A growing area of concern for retailers is the illicit trade in Roll Your Own tobacco (RYO) following the introduction of a 30g minimum RYO pack size on 20 May 2017. This new minimum means that the vast majority of RYO consumers face large ‘out of pocket’ spending increases, some as high as 300%, therefore pushing those users to purchase on the illicit market. The Illegal Tobacco Products Research Surveys 2018 found that the number of illicit RYO pouches held by smokers surveyed has more than doubled in the last two years – jumping to 21% from 9% in 2016

  • Massive spike in illicit roll your own tobacco damaging legitimate retailers

    Retailers Against Smuggling (RAS) have expressed their outrage at the figures shown in Revenue’s Annual Report and Tobacco Products Survey 2018, released this morning (Wednesday)The figures reveal that there has been a dramatic rise in the levels of illicit and non-Irish duty paid roll your own tobacco products in the last year, along with no decrease in levels of illicit/non-Irish duty paid cigarettes.

    RAS continues to commend Revenue on the work they are doing – this year 5,339 seizures of illicit tobacco products worth €42.3 million took place. However, it is clear that there are not enough resources available to Revenue and An Garda Siochána to tackle the severity of the situation. Of the 5,339, only 16 charges were made for smuggling and 58 for selling illicit products.

    RAS spokesperson Benny Gilsenan said “Revenue work hard, but it’s becoming clear that criminals are working harder to get these products into our country. Every year RAS express our concern over the growing levels of illicit products, and every year it seems to fall on deaf ears. 67 million illicit cigarettes were seized last year, but 453 million went on to be sold illegally. The numbers are staggering.”

    Most staggering are the levels of illicit and non-Irish duty paid roll your own tobacco products on the Irish market. The number of illicit packs has jumped from 15% in 2017, to 21% in 2018. The number of non-Irish duty paid also rose from 4% to 7%. Last year RAS repeatedly voiced major concerns about the impact of the introduction of a 30g minimum roll your own pouch size in May 2017. RAS also raised concerns over raising excise duty on these pouches.

    Mr Gilsenan concluded: “RAS is calling for immediate action and 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. Illicit tobacco funds criminal groups and only serves to damage legitimate and responsible retailers. We are asking Minister Donohoe not to raise excise on tobacco products, in Budget 2020 until this situation is under control.”

    Revenue’s full report can be found here

  • 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 –

  • 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.

  • Budget 2019 – Disappointment again as Government fail to protect Irish Retailers

    Retailers are angry at the Government’s decision to impose yet another excise increase of 50c on tobacco, bringing the total cost of an average packet of cigarettes to €12.70. 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. Revenue’s 2017 Tobacco Survey showed that the total amount of illegal cigarettes smoked in Ireland rose to 13%.

    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 freeze on further excise increases until the Government can gain control over the growth of the black market in Ireland, particularly with the looming uncertainty of Brexit.

    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. We want more resources to be given to Revenue to protect businesses from illicit trade in tobacco, alcohol and solid fuel.”

    Mr Gilsenan continued “This year we have seen the discovery an illegal cigarette factory on Irish soil for the first time, and only this weekend we saw the discovery of two separate oil laundering operations and it’s significant that these plants were found near the border. The increase further widens 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 laid out measures that would protect Irish retailers, but the Government has completely ignored us yet again. If 2017 is anything to go by, we will continue to see the consequences of this into next year. The illegal tobacco trade cost Ireland €1.76 billion between 2010 and 2017. That’s enough to build 8,400 social housing units in Dublin but instead the money went into the hands of criminal gangs.”

    -ENDS-

    For Further Information
    Email: info@retailersagainstsmuggling.ie

    ***RAS SPOKESPERSON BENNY GILSENAN WILL BE AVAILABLE FOR COMMENT IN BUSWELLS TODAY FROM 12.30***

  • Retailers Against Smuggling attend Leinster House briefing to raise awareness of the growing concern surrounding smuggling in Ireland

    Wednesday 4 July, Dublin

    On Wednesday, 4 July, Retailers Against Smuggling (RAS) attended a Leinster House briefing hosted by Fianna Fáil Deputy Declan Breathnach to raise awareness of the growing concern surrounding smuggling in Ireland.

    Following the success of our ‘Brexit, the Border and the Black Market’ roundtable in Belfast on 15 June, Deputy Breathnach invited RAS into Leinster House to speak about how illicit trade is negatively impacting Irish Retailers and our local communities.

    RAS believe that until measures are taken to effectively tackle smuggling to protect small businesses, there should be no further increase in excise. We have witnessed a growth in Non-Irish duty paid which is a major concern to retailers, from 17% in 2013 to 20% in 2017 and due to the year-on-year increases in excise, this is likely to grow even further. Further hikes will lead to greater price differentials between legitimate, legal, duty-paid products and illicit, non-duty-paid products. We are calling for a moratorium on further excise increases until they can be proven not to lead to a surge in smuggling.

    RAS spokesperson, Benny Gilsenan, said: “We want to give a voice to the shopkeepers around the country that are having their business undermined by smuggled tobacco, alcohol and solid fuel. Retailers face an uncertain future with Brexit looming, so the Government needs to totally reconsider its policy of year-on-year excise increases, which clearly helping fuel the illicit trade and to provide more resources to Revenue to stop the flow of illicit goods into Ireland and our local communities. We’re grateful for the opportunity today to speak at Deputy Breathnach’s briefing today and help raise awareness of this growing issue for small retailers.”

  • Border retailers 70% more concerned about impact Brexit will have on smuggling and the border, compared to last year’s annual survey

    14 June 2018, Dublin

    Retailers Against Smuggling (RAS) are launching their second annual survey at the second high-level roundtable discussion in Belfast to tackle Brexit, the Border and the Black Market. Members of the Irish Government, An Garda Síochána, the PSNI and HMRC will meet to discuss the issues that retailers on both sides of the border will face in the coming months and years.

    The cross-border survey conducted by RAS has revealed that since last year border retailers in both Ireland and Northern Ireland are almost 70% more concerned about the impact Brexit will have on smuggling and the sale of illicit goods in their communities. Responses from retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with retailers across Northern Ireland. The survey results demonstrate the fact that the growing issue of smuggling over the border must remain a priority during all Brexit negotiations.

    The survey found that 3/5 retailers in Northern Ireland have noticed an increase in the trade of smuggled products in the past year, while 90% of border retailers in Ireland believe the trade of smuggled products impacts their profits by 5-10%. 43% of retailers on the North side of the border estimate this same impact to be 10-20% of their turnover.

    RAS spokesperson and Dublin based retailer Benny Gilsenan said “It’s not just the loss of revenue from missing out on the sale of a packet of cigarettes or bottle of wine. Retailers find that when a customer doesn’t buy these in their shop, they’re not buying their pint of milk, they’re not buying their sliced pan with us either. It has a huge knock on effect on small businesses, and this is seen on both sides of the border.”

    CEO of Retail Excellence Ireland Lorraine Higgins said “Greater consideration needs to be given to the challenges retailers are facing, and how Brexit will only exacerbate those difficulties. Rising excise tax has proven to be an ineffective way of dealing with the problem, we need to see the Sale of Illicit Goods Bill introduced so that progress can finally be made.”

    CEO of Retail NI Glyn Roberts said “It has become strikingly clear that more resources need to be made available to tackling the issue of smuggling in Ireland. Government needs to listen to retailers and provide the necessary supports.”

    A key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products.

    The survey also revealed a shocking lack of trust in the resources made available to the authorities by Government with only 1/5 retailers of the belief that the PSNI and An Garda Síochána have the resources they need to deal with smuggling and illicit trade in their area both north and south of the border. Only 1/5 border retailers believe that the authorities have adequate resources. Of the Northern Irish border retailers who have never reported trade in illicit goods in the past, 63% said they would not report illicit trading because they believed it would make little difference.

  • 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.”

  • Illegal cigarette factory found in Louth highlights growing market for criminal gangs, say concerned retailers.

    15 March 2018

    11 people have been arrested after an illegal cigarette production factory was discovered by Gardaí and Revenue in Louth today. 25 million illegal cigarettes were discovered, along with over 40 tonnes of tobacco, as well as production and packaging equipment estimated to have cost the Exchequer €12 million.

    Retailers Against Smuggling’s (RAS) Leinster spokesperson Benny Gilsenan commented on the breaking reports today “The uncovering of the illegal cigarette factory run by criminals highlights the growing market in Ireland for cheap illicit tobacco products all the while successive Governments increase the price of legal cigarettes that legitimate and tax paying retailers like myself sell. It is also striking that this illegal factory producing branded packs at a time when retailers are receiving plain packs legitimate retailers

    It is time for the Government stop increasing excise and focus on the issue and give consideration to the impact the illicit trade is having on small retailers who are already struggling to maintain business and keep on current employees. RAS would like to thank an Garda Síochána and Revenue for all their hard work but unfortunately while our Government continues to ignore the grave concerns of the declining small retailer, there will only be more illegal cigarette and alcohol factories found across the State”.

  • 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.”