Robert Dowds (Dublin Mid West, Labour)
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Question 140: To ask the Minister for Finance his plans to increase the fines for those engaged in the illegal tobacco trade; and if he will make a statement on the matter. [9229/12]

Robert Dowds (Dublin Mid West, Labour)
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Question 141: To ask the Minister for Finance the penalties available to the courts in terms of tackling the illegal tobacco trade. [9230/12]

Robert Dowds (Dublin Mid West, Labour)
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Question 155: To ask the Minister for Finance if he will quantify the loss to the State of the sale of illegal tobacco and if he will indicate the extent of that loss. [9228/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 140, 141 and 155 together.

I am informed by the Revenue Commissioners that a survey commissioned by Revenue and the Office of Tobacco Control in 2009 estimated that 20% of cigarettes consumed in the State had not been taxed in this jurisdiction. This figure was further broken down as 14% illicit product and 6% legally imported by passengers arriving into the State from other jurisdictions. A similar survey in the last quarter of 2010 confirmed these estimates. Based on an estimate of 14%, the loss to the Exchequer from illicit cigarette consumption in 2011 would be in the region of €250m (excise duty + VAT). A further survey is currently underway.

Section 119, as amended, of the Finance Act 2001 contains penalties for offences in relation to cigarette smuggling. That section sets out the various actions that constitute offences of evasion or attempted evasion of excise duty, as well as the penalties, by way of a fine or imprisonment, for such offences.

Where a conviction for an offence under section 119 occurs following a summary prosecution, the fine that may be imposed is €5,000. A Court may also impose a term of imprisonment not exceeding 12 months, either instead of or in addition to the fine. For convictions following prosecution on indictment, the applicable fine is an amount not exceeding €126,970 or, where the value of the tobacco products concerned is greater than €250,000, not exceeding three times the value of the products. The Court may also impose a term of imprisonment not exceeding 5 years, as an alternative, or in addition, to the fine.

Section 78 of the Finance Act 2005 includes penalties for the illegal sale of tobacco products. A Court may, following a summary conviction, impose a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both. The penalty following conviction on indictment is a fine not exceeding €126,970 or imprisonment for a term not exceeding 5 years, or both a fine and imprisonment.

The specific penalty to be imposed in any particular case is a matter for the Courts. Section 130(2) of the Finance Act, 2001 permits a trial judge, in his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount so mitigated is not greater than 50% of the amount of the fine.

The fines for excise offences have been increased in the recent past: those that apply in the event of conviction on indictment were increased substantially by the Finance Act 2010. The need for further changes will be kept under review, taking account, among other considerations, of practical experience of the operation of the increased fines.