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  • 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 and the Exchequer suffer as over 742 million cigarettes bought illegally or brought from overseas

    27 April 2017

    The Revenue 2016 Annual report shows more resources are needed to tackle tobacco and alcohol smuggling:

    • In 2016, 10% of the cigarettes in Ireland were illegal, while 8% were non-Irish duty paid (NIDP)
    • This means that 742 million cigarettes in 2016 were not purchased from registered and legitimate retailers in Ireland.
    • Additionally, 9% of Roll Your Own (RYO) tobacco was illegal, with 3% NIDP.

    Retailers Against Smuggling (RAS) welcome the publication of Revenue’s Annual Report 2016 and Ipsos MRBI Illegal Tobacco Products Retailers Against Smuggling Research Surveys 2016, in particular the inclusion of Roll Your Own (RYO) tobacco figures ahead of the introduction of a 30g minimum pack size on 20 May this year. RAS now call for the Government to provide more resources to combat smuggling, particularly due to the uncertainty caused by Brexit.

    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 on 20 May. This will mean the vast majority of RYO consumers face large ‘out of pocket’ spending increases, some as high as 300%.

    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. Only yesterday, RTE ‘Liveline’ broadcast a piece on adolescents advertising cheap, illegal cigarettes in Meath. 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.

    Alcohol

    The figures also highlight the shocking disparity between alcohol seizures and summary convictions: there were 1,875 seizures of illicit alcohol in 2016, but only four summary convictions. RAS call for proper enforcement of the current legislation to ensure those who sell illegal alcohol 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.

    “At a time when retailers are facing an increasingly uncertain future with the looming spectre of Brexit, the Government have a responsibility to protect retailers and Ireland’s communities from this prevalent criminal activity.” Gilsenan continued.

    “RAS support Fianna Fáil TD Declan Breathnach’s Sale of Illicit Goods Bill, tabled in March. But it is clear to retailers that the Government needs to step up and protect small retailers before Ireland’s recovery is further threatened.”

  • Retailers Against Smuggling welcome the Sale of Illicit Goods Bill as landmark step in the fight against smuggling

    3 April 2017

    Retailers Against Smuggling (RAS) today welcome the introduction of the Sale of Illicit Goods Bill as a significant step in combating smuggling into Ireland – a problem that cost the exchequer as much as €2.4bn in 2015. The aim of the draft legislation is 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.

    RAS spokesman, Benny Gilsenan, welcomed the Bill as a means of protecting small retailers: “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.”
    While RAS welcome the draft 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.

    The draft legislation will be tabled in Dáil Éireann by Fianna Fáil TD for Louth/Meath East, Declan Breathnach and Robert Troy Longford/Westmeath, on 4 April. RAS would like to thank and commend Deputy Breathnach for his dedication in drafting a Bill that is important to the economy of our island during these uncertain times.

  • 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.”

  • Retailers Against Smuggling (RAS) disappointed at increase in excise tax which will directly impact retailers and the poorer in our society.

    11 October 2016

    This comes despite the fact that his own Department has acknowledged that such increase, as a result of the level of smuggling and resulting loss to the exchequer, will not increase the overall tax take of the State.

    Retailers Against Smuggling Chairman Benny Gilsenan said this afternoon in Buswells Hotel “This move is nothing more than a measure which impacts the poor in our society– a greater % of poorer people in Irish society smoke than any other social class. To add insult to injury, by pushing consumers to affordable smuggled products, Minister Noonan’s measure will also help criminal gangs to sell their smuggled product which in turn negatively impacts legitimate retailers. There are TDs across the country who are vocal in their support of retailers and understand the negative impact on the trade of continual excise increases – despite this, Minister Noonan seems set on ignoring all of this to create the illusion of income.”

    Benny continued: “We are very disappointed. We pay our taxes, comply with all the laws of the land, but Minister Noonan is penalising us and our customers, to create an illusion of tax take which ultimately hurts the poor and aids criminal gangs.”

  • Tax Strategy report encouraging Budget 2017 excise increase is direct win for smuggling criminals

    21 July 2016

    Retailers Against Smuggling (RAS) Spokesperson Benny Gilsenan expressed his frustration and disappointment following the publication of the Tax Strategy Group report (TSG) today which suggested it may be prudent to raise the Minimum Excise Duty in Budget 2017: “despite the TSG highlighting that 12% of cigarettes in Ireland are illicit and that we have a huge problem with tobacco product smuggling, the Government are being advised to continue to raise the price of cigarettes which will only impact legitimate retailers and the poorer in our society”. The Healthy Ireland Survey (October 2015) found that smoking levels are higher amongst those living in the most deprived areas and in lower social classes. Therefore increases in excise tax on cigarettes directly affects the poor and marginalised in society and in turn leads to the diversion of smokers to the illegal cigarette market.

    Over the period 1994 to 2015, Tobacco Products Tax fell from contributing 4.3% of Exchequer tax revenue to 2.4% despite excise on tobacco products increasing in 20 of the last 24 budgets. Benny continued “It is clear to me that the Government will not take into consideration the direct impact this is having on legitimate tax paying retailers and those less off in our society and are playing into the hands of the criminal who sell packs on the street for €4-5 undercutting retailers by a whopping 50%”.

    The TSG noted that the amount of illicit cigarettes seized by Revenue has been on the increase since 2012 and that this “is a clear indication of the significant level of both small-scale and bulk smuggling activity”. Benny concluded “until such time as smuggling has been brought under control in Ireland (under 5% of all product sold), there should be no further increases on tobacco excise”.

    Retailers Against Smuggling (RAS) represents over 3,000 retailers, working to generate widespread awareness of tobacco and fuel smuggling in Ireland, its cost to retailers, how it is affecting their local economy and how legitimate retailers are disadvantaged because of smuggling by organised criminal gangs on both sides of the border.

  • OLAF calls for targeted national awareness-raising campaigns to fight cigarette smuggling

    21 July 2016

    Retailers Against Smuggling (RAS), representing over 3,000 retailers across Ireland, welcome the Eurobarometer survey OLAF (European Anti-Fraud Office) commissioned to explore the attitudes and opinions of Europeans on the cigarette black market in order to help Member States better target awareness-raising campaigns to fight cigarette smuggling. RAS have previously called for this in their pre-Budget submission and hope the government will use these interesting results to raise awareness of the impact the black market has on our economy and on legitimate tax paying businesses. The survey, entitled “Public perception of illicit tobacco trade”, pooled the answers of 27,672 respondents from different social and demographic groups in 28 Member States.

    Retailer and RAS Spokesperson Benny Gilsenan reacted to the survey results today: “of the 1,000 interviewees from Ireland, 81% of them would purchase illegal cigarettes because they are cheaper (compared to 74% in other EU countries). Illicit tobacco products can be bought from criminals for €4-5 which undercuts the legitimate retailer by 50%, yet our Governments is looking to further increase excise tax. Each time we increase excise tax, we allow for an increase in the illicit trade of cigarettes when what we really need is the enforcement of current legislation and more resources for Revenue”. RAS pre-Budget 2017 submission calls for a moratorium on further excise increases until such increases can be proven not to encourage smuggling as a result of price differentials. The Healthy Ireland Survey (October 2015) found that smoking levels are higher amongst those living in the most deprived areas and in lower social classes. Therefore increases in excise tax on cigarettes directly affects the poor and marginalised in society and in turn leads to the diversion of smokers to the illegal cigarette market.

    The survey also found that Irish respondents are twice as likely to see black market cigarettes as the second most important source of revenue for organised crime than other EU Member States (30% in IE, 14% in other EU MS). “It is clear that the Irish respondents see the black market as a major source of profit for criminals in Ireland. In order to tackle this hugely profitable illegal trade and to protect legitimate businesses the government needs to make it illegal to purchase tobacco or fuel products on which the carbon tax or tobacco excise has not been paid and allow for the repeal of market licences by Local Authorities where illegal goods are being sold”. 39% of Irish respondents also worry about the revenue for organised crime, compared to 35% of other EU Member States respondents.

    Benny concluded “it is clear that Irish citizens are worried about the impact of the illicit trade of cigarettes and we hope that the Government will take into consideration the measures in our Budget submission in order to protect the future of legitimate businesses”.

  • Retailers welcome cross-border Joint Agency Task Force’s first report on its efforts in tackling cross jurisdictional crime

    5 July 2016

    Retailers Against Smuggling (RAS) today welcomed the first report from the Joint Agency Task Force, which was set up under the Fresh Start, The Stormont Agreement and Implementation Plan by the British and Irish governments and the Northern Ireland Executive as part of “a concerted and enhanced effort to tackle organised and cross jurisdictional crime”. The report, which prioritised excise fraud and illicit trade as part of its work programme, was discussed at the North South Ministerial Council yesterday at Dublin Castle.

    Stephen Daly, retailer and RAS Spokesperson, commended the Task Force today “RAS welcome the great work done by all the agencies involved in their efforts to tackle organised crime along our border. This is a huge step in the right direction and will help ensure legitimate retailers in the border counties are the only sellers of these products and ensure carbon tax and tobacco excise is paid to the relevant coffer.”

    Grant Thornton’s Illicit Trade 2016 report stated that the high price of tobacco in Ireland and Northern Ireland is an incentive to organised criminals to supply cheaper illicit products because their margins of profit are so large costing the Irish Exchequer and right holders/retailers €250 million in 2015 alone. Mr Daly concluded ”We look forward to a month being dedicated to tackling the smuggled solid fuel and tobacco products and hope that the Irish government consider our pre-Budget 2017 submission to compliment the hard work our agencies are doing along the border”.

    Retailers Against Smuggling Pre-Budget 2017 submission:
    • A moratorium on further excise increases until such increases can be proven not to encourage smuggling as a result of price differentials.
    • Enforcing the offence of purchasing illicit cigarettes.
    • The establishment of a Working Group on illegal trade in Ireland in which all interested parties are invited to participate.
    • Full use of existing resource and an increase in same over time to allow the Revenue Commissioners, with An Garda Siochána, to enhance their efforts to tackle tobacco and fuel smuggling.
    • Support, through resources pledged for An Garda Siochána and the Revenue Commissioners, for the work of the Joint Agency Task Force, set up under the terms of the 2015 A Fresh Start Agreement, to tackle cross-jurisdictional organised crime.
    • An extension of the Fines (Payment and Recovery) Act 2014 to cover all those deemed to have illegally smuggled cigarettes or fuel, regardless of that person’s means.
    • An extension of the investigations scope of Revenue to non-registered retail outlets; for those outlets which are repeat offenders of selling illicit cigarettes and tobacco, the serving of closure orders.
    • A repeal of market licences by local Councils where illegal goods have been found to be sold.
    • Increased inspections of non-tobacco and non-fuel retail shops by the EHO.
    • Regular spot checking of fuel transports on the road for compliance with carbon tax and VAT legislation.