Pat Breen (Clare, Fine Gael)
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Question 252: To ask the Minister for Finance the estimated value of tax revenue lost through the importing of smuggled cigarettes in 2004 and 2005; if the estimated amount of smuggled tobacco is rising or decreasing during that period; and if he will make a statement on the matter. [36476/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the amount of tax collected on cigarettes was €1,059 million in 2004 and €1,079 million in 2005. The position up to end October 2006 is that tax revenue on cigarettes is 1.3% above the corresponding period in 2005. It is not possible to estimate how much revenue has been lost during 2004 and 2005 due to smuggling. The number of cigarettes seized in 2004 and 2005 amounted to 60.9 million and 50.7 million respectively while seizures up to 30 September 2006 amounted to 39.7 million. In many cases both the cigarette brands and the circumstances in which they were seized would, however, suggest that a significant portion of what was seized was intended for the UK market leading to the conclusion that the penetration of the domestic market by smuggled cigarettes is low.

Nevertheless, there has been a noticeable increase in the frequency and volume of cigarettes being seized from passengers and couriers arriving by air from Eastern Europe where prices are significantly lower than in Ireland. This is a cause for concern as these cigarettes are intended for a certain segment of the Irish market. This matter is being kept under review. The number of convictions for cigarette smuggling was 49 in 2004, 102 in 2005 and 105 up to 30 September 2006.