Dáil debates

Tuesday, 15 October 2013

Financial Resolutions 2014

No. 2: Tobacco Products Tax

7:55 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

It has started to drop. There may be a decrease and that is to be welcomed.

The various surveys by Retail Ireland and others show that one in every three cigarettes purchased in this State is purchased on the black market or through illicit trade. The surveys show that this costs the Exchequer in the region of €700 million in lost revenue. Statistics show that detections this year are lower than in previous years. I understand there is quite a low figure. We know, from documentaries, including "Prime Time", that we do not have the necessary infrastructure to combat very organised tobacco-smuggling criminals, as Deputy Lyons mentioned.

If we decide, as a State, to impose the highest excise duty on cigarettes in Europe we must make sure we have in place our defences and barriers. That is the problem right now - we do not have them in place. That is why in every town and village in Ireland one can buy a pack of cigarettes for €4 or even less. When the margins start to increase, it drives more people into it. The reality is that black market activity in cigarettes has been normalised. There would not be such a high level of black market activity if ordinary, decent Irish people did not think there is nothing wrong with smoking a packet of cigarettes bought on a street corner for €4-----

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