{"id":630,"date":"2025-08-01T12:20:16","date_gmt":"2025-08-01T12:20:16","guid":{"rendered":"https:\/\/blog.retailersagainstsmuggling.ie\/?p=630"},"modified":"2025-08-05T08:07:51","modified_gmt":"2025-08-05T08:07:51","slug":"tax-strategy-group-papers-confirm-black-market-tobacco-sales-on-the-rise-shelflife","status":"publish","type":"post","link":"https:\/\/blog.retailersagainstsmuggling.ie\/index.php\/2025\/08\/01\/tax-strategy-group-papers-confirm-black-market-tobacco-sales-on-the-rise-shelflife\/","title":{"rendered":"Tax Strategy Group Papers confirm black market tobacco sales on the rise – Shelflife"},"content":{"rendered":"\n
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25 July 2025<\/p>\n\n\n\n

Retailers Against Smuggling<\/a> (RAS) has called for urgent action to be taken to combat black market tobacco.<\/p>\n\n\n\n

The group that represents over 3,000 small and medium sized retailers across the country noted that the Tax Strategy Group (TSG) Papers for 2026 admit that the prevalence of illicit and non-Irish duty paid tobacco illustrate that increases to excise duties \u2018may not lead to increased revenue\u2019, reinforcing that excise increases are fuelling a booming black market, rather than reducing smoking rates.<\/p>\n\n\n\n

The papers follow on from Revenue\u2019s<\/a> recently published Illegal Tobacco Products Research Survey 2024- independently conducted by Ipsos MRBI- which revealed a staggering total loss of roughly \u20ac934 million in taxpayer money to illegal tobacco<\/a> products last year alone, it added.<\/p>\n\n\n\n

TSG publication<\/strong><\/p>\n\n\n\n

The TSG publication, which sets out options for tax policy changes, acknowledged that annual figures show the excise on tobacco products, which has increased by steadily increased by \u20ac3.75 since 2019, is having the opposite of its intended effect- pushing consumers to purchase illicit or non-duty paid tobacco, while the revenue generated by Tobacco Product Tax falls year on year.<\/p>\n\n\n\n

According to the publication, despite intentions to increase revenue to the Exchequer through increased Tobacco Product Taxation, figures show that TPT revenue has in fact plummeted from \u20ac1.32 billion in 2020, to just \u20ac976 million in 2023- a loss of \u20ac342 million to the taxpayer.<\/p>\n\n\n\n

Even more concerning, the TSG Papers noted that three quarters of this yield was collected prior to the Budget<\/a> 2025 excise increase.<\/p>\n\n\n\n

Meanwhile, Revenue statistics show the value of tobacco seizures doubled between 2023 and 2024, to \u20ac130 million, it added.<\/p>\n\n\n\n

Benny Gilsenan, national spokesperson, RAS, stated: \u201cAs admitted by the Government in the latest Tax Strategy Group Papers, it is clear that increasing excise on tobacco products is not only having no effect on smoking rates- with \u20ac934 million in lost taxes on tobacco products, the scale of Ireland\u2019s untaxed tobacco market is staggering \u2013 and it\u2019s taking business away from legitimate Irish retailers in Ireland\u201d<\/p>\n\n\n\n

The TSG papers also call-out and discuss RAS\u2019 pre-budget submission, which highlights this trend of tax loss in comparison to excise increase, and submits that a freeze on excise and improved detection and enforcement of illicit trade is the best option to increase TPT revenue and to put money back into taxpayer pockets.<\/p>\n\n\n\n

Big spike<\/strong><\/p>\n\n\n\n

Reference is made to the stark Revenue Commissioner survey published this April, which revealed a whopping 37% spike in illicit market cigarettes.<\/p>\n\n\n\n

These accounted for 26% of all cigarettes in circulation in 2024 compared to 19% in 2023, and were worth over \u20ac590 million in lost taxes.<\/p>\n\n\n\n

RAS estimates that a further \u20ac249 million was lost on the survey\u2019s reported 11% travel purchases of cigarettes in 2024.<\/p>\n\n\n\n

No Irish excise or VAT has been paid on any of these cigarettes and RAS is concerned that many of these \u2018legal\u2019 cigarettes are being brought in breach of duty free and travel allowances.<\/p>\n\n\n\n

RAS estimates that a further \u20ac95 million was lost in taxes on RYO Tobacco in 2024, bringing the total taxpayer losses on tobacco products to an astounding \u20ac934 million in one year alone.<\/p>\n\n\n\n

\u201cContinuous increases in excise are driving people to purchase the cigarettes from the black market or abroad, and we are seeing less money from the Tobacco Products Tax every year it is increased,\u201d Gilsenan added.<\/p>\n\n\n\n

\u201cIt has become clear it is no longer a financially viable approach, and it is time for the Government to focus on tackling illicit trade, rather than taking measures which affect legitimate retailers and the taxpayer.\u201d<\/p>\n\n\n\n

RAS pre-Budget submission<\/strong><\/p>\n\n\n\n

In its pre-budget submission, RAS are calling on the Government to:<\/p>\n\n\n\n