RAS Blog

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  • 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.

  • Ireland has the most expensive alcohol products and the second most expensive tobacco products in Europe which directly fuels the Black Market and damages legitimate businesses, says retailers.

    16 June 2016

    Statistics published by Eurostat yesterday show that Ireland is the second most expensive country in Europe for tobacco and first for alcohol. This breaks down to 189% of the European average for tobacco products and 175% for alcohol.

    The Illicit Trade 2015-2016 Implications for the Irish economy report published recently by Grant Thornton highlighted that the key driver for the illicit trade of cigarettes and tobacco products is the increasing level of excise tax. Retailers Against Smuggling Spokesperson and retailer Benny Gilsenan commented “increasing excise creates a very viable and extremely profitable business for criminals to sell illegal cigarettes for €3-4 on the streets. This not only leaves the Exchequer at a loss of over €240 million per annum, it directly impacts legitimate, tax and license paying businesses”.

    “Due to the excise increase, we have now reached a stage where the price of legitimate products is over double that of smuggled cigarettes. For most consumers, that’s a no-brainer and they will choose the cheap, illegal products,” Mr. Gilsenan said.

    The Grant Thornton concluded that excise increases result in lower priced illicit alcohol products being more attractive for consumers. Mr Gilsenan noted that “when products such as alcohol are as expensive as they are now in Ireland, consumers turn to distilling their own or buying counterfeit alcohol which is incredibly dangerous”.

    Mr. Gilsenan continued, “The month of June alone has seen Irish Revenue seize over 8.6 million illicit cigarettes which is over 8 million more than in June 2015 and following the hike in prices in October 2015 budget, I would seriously question the effectiveness of increasing excise tax. As it stands 12% of the cigarettes on the Irish market are illegal. If the Government continues to increase excise on cigarettes and alcohol, you will see more small stores closing and eventually criminals taking over the market completely” stated Benny.

  • As the Black Market continues to grow, what will the new Government do differently to tackle the blight of smuggling?

    27 May 2016

    Despite the prevalence of smoking in Ireland decreasing from 22% in 2009 to 17% in 2014 (Department of Health), the illicit trade of tobacco continues to be a huge burden on the public purse with an annual loss of revenue to the Exchequer. In the first five months of 2016 Revenue seized smuggled cigarettes and tobacco products worth almost €12.3 million to the Exchequer, an increase of €2 million during the same period in 2015. Meanwhile, the solid fuel sector has expressed concern over the fact the Revenue have no reliable way to estimate the size of the smuggled solid fuel trade across the border.

    This €2 million increase came following the excise increase of 50c in October 2015. Benny Gilsenan, retailer and Retailers Against Smuggling (RAS) spokesperson for Leinster, commented “I struggle to see the logic of increasing excise tax not only because it drives people to the Black Market for their €3-4 pack of illegal cigarettes but it also leads to a tobacco tax yield budget shortfall which was calculated by the government in 2015 as being €223 million. In the run up to the budget, the Government really has to address the elephant in the room which is that excise increases are only contributing to the problem. ” On that basis alone, RAS calls for a moratorium on further excise increases until levels of smuggling are tackled.

    In its 2015 Annual Report, Revenue found that 12% of cigarettes packs held by smokers were classified as illegal. Benny continued “The fact that 1/10 cigarette packs are illegal highlights that more intervention is necessary by the new Government to cut off the blood supply of these multi-million euro businesses run by criminal gangs. Legitimate businesses like mine are being directly affected. We pay all of our taxes, the tobacco retail licence fee and adhere to the Show Me ID programme so the Government should be protecting our legal businesses.” Increased spot checks by Environmental Health Officers on non-retail outlets are necessary to prevent the sale of illicit tobacco products and solid fuel.

    “To make matters worse, of the 5,927 seizures in 2015 fines averaging €2,656 were imposed in just 89 cases. The current legislation for attaching fines only covers those already in employment. It is clear to me that this needs to be extended to those unemployment or on benefits in order to begin to deter people from selling smuggled goods on our streets” said Benny.

  • Retailers group welcome Illicit Trade report that highlights attractiveness of smuggling to criminals in Ireland

    9 May 2016

    The Illicit Trade 2015-2016 Implications for the Irish economy released today by Grant Thornton highlights that the key driver for the illicit trade of cigarettes and tobacco products is the increasing level of excise tax. Retailers Against Smuggling spokesperson and retailer Benny Gilsenan reacted today: “Increasing excise tax is nothing more than a tax on the poor and small legitimate businesses who’s legal cigarette trade can account for 20-30% of business.” RAS welcomes the recommendations to increase international cooperation with EU and non-EU law enforcement agencies, strengthen controls in Irish ports and airports and promote security preventive measures for all persons engagement in the tobacco supply chain.

    In regards to solid fuel smuggling the Report recommends the auditing of fuel suppliers by Revenue, obtaining records of the same based in Northern Ireland and registering all solid fuel traders as is done with petroleum oil suppliers. Benny went on to say “Grant Thorton’s yearly report highlights the impact the Black Market has not only to our economy but to the legitimate businesses who are selling legitimate products.”

    One of the recommendations in the Report is to increase the penalty for those caught smuggling cigarettes because the low penalties imposed in Ireland make it an attractive trade for criminals and convictions have decreased between 2010 and 2014 from 97 to 53. “These criminals go largely unpunished and with fines averaging €2,700, this is a lucrative illegal business for criminal. Now we have a new government it is time they tackle the illegal trade that is devastating small businesses across the country.”