The difference between tobacco prices paid in Ireland and those in mainland Europe is fuelling a growth in Irish consumers purchasing tobacco abroad to avoid paying excise duties, according to a retail industry body.<\/p>\n\n\n\n
Spain<\/a> is the biggest market for those purchasing tobacco and bringing it into Ireland (48 per cent), followed by the UK and the Canary Islands, new data has found.<\/p>\n\n\n\n The data comes from polling firm Am\u00e1rach<\/a>, but was commissioned by Retailers Against Smuggling (RAS), which represents small and medium-sized retailers<\/a> who benefit directly from the stability of the legal tobacco industry.<\/p>\n\n\n\n Of the 1,000 Irish adults polled as part of the research, half said they smoked. More than one quarter (28 per cent) said they had purchased tobacco abroad (15 per cent) or in duty-free (21 per cent).<\/p>\n\n\n\n RAS says the figure is growing over time due to the \u201cstark\u201d price gap between Irish tobacco prices and those in Europe.<\/p>\n\n\n\n The excise duty on a packet of cigarettes in Spain is about \u20ac3, compared to almost \u20ac11 in Ireland, they said. Consequently, the cost of a packet in Ireland is more than double the European average.<\/p>\n\n\n\n In the most recent budget, the price of a packet of 20 cigarettes increased by 50 cent, bringing the price to almost \u20ac19.<\/p>\n\n\n\n The retail body said it is concerned the price differential is \u201cfuelling both cross-border purchasing and the growing volume of tobacco products entering Ireland without Irish duty being paid\u201d.<\/p>\n\n\n\n Benny Gilsenan of RAS said smoking rates are \u201cno longer declining at the pace they once were, while the illicit market continues to expand\u201d.<\/p>\n\n\n\n Figures from Revenue<\/a> indicate that illegal cigarettes now account for more than a quarter of the market, representing an estimated loss to the exchequer of \u20ac590 million a year<\/a>.<\/p>\n\n\n\n The group said the move to duty-free and the illicit trade is undermining the Government tax take and hurting retailers.<\/p>\n\n\n\n It called for stronger enforcement of the new Revenue rules which gave greater powers to address those who attempt to breach the limits on the amount of tobacco product individuals can purchase at duty-free or abroad.<\/p>\n\n\n\n \u201cThe new rules introduced last year are welcome, but they must be backed up with visible, targeted enforcement.\u201d<\/p>\n\n\n\n