Stephen Donnelly (Wicklow, Fianna Fail) | Oireachtas source

That is a fair point. I have figures before me relating to the illicit trade. Deputy Duncan Smith asked whether the Government has considered the point at which the benefit of the revenue brought in by duties on tobacco is outweighed by the increase in counterfeit tobacco and the associated effects. Health officials and finance officials consider the fact that when we increase the tax and the price goes up, it increases the volume of illicit trade. The briefing note I was provided for this session shows that the volume of illicit trade in roll-your-own tobacco is increasing. That is something we need to consider. Tackling it probably involves an investment in customs, justice and enforcement, as well as in Healthy Ireland and awareness.

On the facts and figures, the consumption of illicit and non-Irish duty paid cigarettes in 2018 stood at 22% of the market, which is a sizeable chunk. That figure comprises 13% illicit cigarettes and 9% illegally imported. In 2019, the Revenue Commissioners seized 13.4 million cigarettes worth approximately €8.59 million, which is a sizeable amount. The total cigarette consumption in Ireland last year is estimated to have been 2.769 billion cigarettes or 138 million packs. An estimated 15% of cigarette packs or approximately 415 million illicit cigarettes were consumed last year, representing a notional tax loss of €242 million. This is serious stuff. Furthermore, there has been an apparent increase in the illicit market for roll-your-own tobacco. It is estimated that illicit roll-your-own cigarette packs accounted for 12% of the market in 2019, at a cost to the Exchequer of €22 million in excise and VAT.

On the point made by Deputy Howlin, what is also relevant is that the estimated tax loss for cigarettes and roll-your-own tobacco is viewed as a notional loss in Exchequer tax revenue as it assumes that the illicit cigarettes consumed would displace the equivalent quantity of full duty-paid cigarettes, which is unlikely to be the case.

I am happy to provide the Deputies with any further briefings on the taxation side, the illicit trade, or indeed, my own area of Healthy Ireland. There is much good work that could be done. If Deputies Boyd Barrett or Duncan Smith have ideas about ways in which we could reach other groups and support them in public health ways, I and the Healthy Ireland team would be very interested to hear those ideas. If they wish to meet me in the coming days, I am more than happy to set something up.

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