RAS Blog

Tag: Retailers against Smuggling

  • Retailers concern over tobacco excise increase ignored in Budget 2023

    Retailers concern over tobacco excise increase ignored in Budget 2023

    Retailers Against Smuggling (RAS) has expressed frustration over an excise increase on tobacco which is set to drive further black-market activity as consumers grapple with the soaring cost-of-living. The group was reacting to Budget 2023 announced by the Minister for Finance, Paschal Donohoe TD which included an increase of 50c on the average price of a packet of 20 cigarettes.

    Commenting, National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It is extremely disappointing that Minister Donohoe has once again ignored the concerns of legitimate registered retailers on the direct impact black market activity is having on their businesses. Today’s Budget 2023 announcement will inevitably push many consumers to the black market for the first time and makes illicit tobacco an even more lucrative commodity for organised crime gangs.

    “We fully expect that the percentage of smuggled tobacco on the Irish market will continue to rise because of the increase, eliminating any potential gains to the Exchequer. As consumers turn towards the black market, ultimately it is the retailer who suffers through the loss of not only the legal purchase of cigarettes but also any potential additional purchases that person might make when they are in the store.”

  • Retailers warn cost-of-living crisis is not the right time for further excise increases

    Retailers warn cost-of-living crisis is not the right time for further excise increases

    Widening the gap between price of duty paid tobacco vs what’s available on the black market coupled with cost-of-living is creating unfair competition and financial loss for legitimate retailers

    Any additional excise increases on tobacco products in Budget 2023 will drive hard-pressed consumers to the black market as they grapple with the soaring cost-of-living. That’s according to Retailers Against Smuggling (RAS), who have outlined how Ireland remains a key target for crime gangs taking advantage of a rapidly growing illicit tobacco market.

    Commenting on the organisation’s Budget submission to Minister Paschal Donohoe TD, RAS national spokesperson, Benny Gilsenan explained how further excise increases would directly impact both the retail sector and Exchequer.

    He said: “RAS members are witnessing first-hand how the skyrocketing cost-of-living is forcing Irish consumers to make radical decisions on how and where they spend hard-earned income. For many, the black market has for the first time become the only realistic option for purchasing high excise items such as alcohol, solid fuel, and tobacco products.

    “Year-on-year excise increases on tobacco products in particular have resulted in them becoming an exceptionally lucrative commodity for organised crime gangs. A record year for cigarette and tobacco seizures by Revenue in 2021 shows the extent to which sophisticated criminals are taking advantage of household cost-of-living pressures and rapidly growing demand for the black market in Ireland. A trend which RAS members have seen continue to escalate throughout 2022 as the crisis deepens.”

    Mr Gilsenan added: “In the context of spiralling costs and a challenging operational environment ahead, Budget 2023 must avoid any measures which will negatively impact key revenue streams for retailers including an excise hike on tobacco products.”

    Enforcement of tobacco allowances for travellers coming into Ireland

    RAS has also called on Government to ensure ports and airports are adequately resourced to fully enforce the permitted personal allowances that can be brought into Ireland on non-Irish duty paid products. In 2021, 21% of all cigarette packs and 18% of all roll-your-own tobacco packs held by smokers in Ireland were found to be classified as illegal or non-Irish duty paid according to Revenue’s Tobacco Products Research Survey.

    Mr Gilsenan continued: “A full return to international travel this year and the reintroduction of duty-free shopping between the UK and the EU following the end of the Brexit transition period are also having a significant impact on Irish retail tobacco sales. With Ireland ranked as the most expensive country in Europe to purchase duty paid tobacco, consumers are understandably taking advantage of the option to purchase cheaper product outside the State while travelling and bringing it back.

    “To protect key revenue streams for both retailers and the Exchequer, it is critical that ports and airports are adequately resourced to ensure the permittable allowances set out by Customs for bringing non-Irish duty paid products into the country are fully enforced. Retailers are concerned that these allowances are being exceeded with individuals bringing in much larger quantities than what is permitted for personal consumption or to pass on to friends and family.”

    Download the RAS Pre-Budget Submission 2023 here.

  • Retailers’ welcome seizure of illicit cigarettes and tobacco valued at €5.5million

    Retailers’ welcome seizure of illicit cigarettes and tobacco valued at €5.5million

    Retailers Against Smuggling (RAS) has today (31.08.22) welcomed the Revenue seizure of illicit tobacco and cigarettes with an estimated retail value of €5.5 million at Dublin Port. The seizure included 4.5 million cigarettes and 3 tonnes of ‘roll your own’ tobacco destined for an address in Co. Meath and onward distribution onto the black market.

    Commenting RAS national spokesperson Benny Gilsenan said: “The ongoing seizure of large consignments of illicit tobacco is a first-hand indicator of just how much demand for the black-market is growing. This is understandably driven by the souring cost of living which is forcing consumers to look at all options in terms of how they spend hard-earned income. With continuous year-on-year excise increases placed on tobacco products, it has reached a point where many smokers are forced to turn towards the black market where they know they can make significant savings.

    “The organised crime gangs behind this smuggling activity have recognised this growth in demand for illicit tobacco products as an open goal to fund other streams of criminal activity. With the placement of yet another excise increase on tobacco products expected in next months budget, the gap between the cost of a legal packet of cigarettes and what’s available on the black market is only set to widen. The knock-on consequence being significant loss of revenue to both the Exchequer and legitimate retailers, while major criminals continue to line their pockets.”

  • Retailers Against Smuggling welcomes cigarette seizure at Rosslare Europort

    Retailers Against Smuggling welcomes cigarette seizure at Rosslare Europort

    Retailers Against Smuggling (RAS) has welcomed Tuesday’s seizure by Revenue of 3,300,000 million cigarettes at Rosslare Europort with an estimated retail value of €2,400,000 representing a potential loss to the exchequer of €1,900,000. This brings the total quantity of seized illicit cigarettes reported by Revenue to over 40,000,000 so far this year pointing to a rapidly growing black market in Ireland.

    Considering this latest major seizure, retailers are reiterating their call to Minister for Finance Paschal Donohoe TD not to include a further excise increase on tobacco products in next week’s Budget 2022 announcement. Additional excise increases will only serve to further incentivise consumers to purchase from the black market fuelling further growth in smuggling activity, which continues to impact registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports.

  • 13.5 tonnes of raw tobacco seized points to large-scale illegal cigarette manufacturing

    13.5 tonnes of raw tobacco seized points to large-scale illegal cigarette manufacturing

    Retailers Against Smuggling (RAS) has warned that 13.5 tonnes of loose raw tobacco seized by Revenue so far this year indicates the likelihood of large-scale illegal cigarette factories operating on the island of Ireland. To date Revenue has announced four major seizures of loose raw tobacco with a combined estimated retail value of €8.1 million representing a potential loss to the Exchequer of €6.7m.

    Commenting, RAS national spokesperson, Benny Gilsenan said: “The significant volume of the consignments being seized, and the elaborate means being used to conceal this raw tobacco suggests that it’s unlikely the product is intended for direct resale to the consumer on the black market. The recent spike in these types of seizures has risen suspicion among legitimate retailers that the intended destination is likely to be illegal cigarette making factories operated by criminal gangs in either the Republic of Ireland or Northern Ireland.

    “In 2018, Gardaí and Revenue officials uncovered the first illegal commercial-scale cigarette production plant found in the State in Jenkinstown Co. Louth, which was capable of producing up to 250,000 cigarettes per hour. During that raid up to 66 tonnes of raw tobacco were seized which gives us sense of the volume of tobacco product required to run such an operation. The fear among retailers is that the volumes of raw tobacco now being seized at Irish ports are at a level which indicates that similar underground facilities are operational on the island of Ireland. For example, we know that roughly 13-15 million cigarettes could be produced from the 13.5 tonnes of raw tobacco seized alone, and we suspect further large volumes are getting into the country undetected.”

    Mr Gilsenan added: “Since the Jenkinstown raid several other illegal factories have been uncovered, primarily around the border regions, which suggests a link to illegal cross-border trade and criminal activity. The most recent seizure of an illegal factory on the island was in Armagh in July this year, which could produce 390 million cigarettes a year. While we fully commend and support the work of Revenue and An Garda Siochána as well as their counterparts in Northern Ireland in detecting smuggled tobacco and cigarettes, we believe more can be done by policymakers to tackle the growing illegal trade in tobacco products in Ireland.”

    In its recent Pre-Budget 2022 submission to Minister for Finance, Paschal Donohoe TD, RAS highlighted how continuous excise increases on tobacco are fuelling demand for a growing black market. This is resulting in increased levels of smuggling activity, impacting registered and legitimate retailers who face unfair ‘competition’.

    “The operation of illegal cigarette factories is just one challenge facing the retail sector. We are also very concerned by the additional spate of illicit cigarette and roll your own (RYO) tobacco seizures by Revenue so far this year. To date over 35 million cigarettes and over 20 tonnes of RYO tobacco have been seized highlighting just how active the black market currently is. The combined estimated retail value of all seizures this year amounts to over €45 million, close to €8 million more than the total for 2020.

    “We are calling on Government to consider the impact this increased rate of smuggling is having on retailers. The continued growth of the black market can only be halted by stopping the continuous excise increases on cigarette and tobacco products, the retail price of which is 121 per cent above the EU average according to a new Eurostat survey issued today”, Mr Gilsenan concluded.

  • 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.

  • 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.