Jim O'Keeffe (Cork South West, Fine Gael)
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Question 92: To ask the Minister for Finance his views on loss of revenue to the Exchequer, estimated to be in the region of €400 million annually, arising from the illegal smuggling of cigarettes; and the steps he is taking by way of legislation, enforcement and prevention to stem this loss. [27637/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that they are not in a position to confirm the Deputy's estimate of tax loss from cigarette smuggling, as there is no reliable method for determining such a figure. However, a tentative estimate was given by Revenue earlier this year that about 20% of cigarettes consumed in Ireland may be untaxed, but it is important to emphasise that this includes both legitimate cross- border purchases for personal consumption and contraband and counterfeit cigarettes. Cigarette clearances on payment of tax for the first five months of 2009 are broadly in line with the same period in 2008.

Approximately 42m cigarettes with a retail value of €17.5m have been seized in the first six months of 2009. The efforts that are being made by Revenue to tackle cigarette smuggling include a continuous review of resource deployment both at points of importation and inland with a view to increasing the number of seizures and prosecutions, the procurement of a second Mobile Container Scanner that is expected to be completed this year, continued liaison with An Garda Síochána and where appropriate, the mounting of multi-agency international operations. In addition, Revenue will continue to liaise closely with the legitimate tobacco manufacturers and the Office of Tobacco Control, and will also maintain close contact with the authorities in other Member States and the European Anti-Fraud Office.

With regard to legislation, I can inform the Deputy that existing enforcement legislation is considered adequate for tackling cigarette smuggling. Current penalties on summary conviction for evasion of duties are €5,000 and/or a term of imprisonment not exceeding twelve months. These reflect the maximum statutory penalties that can be imposed by the District Courts. The penalty for conviction on indictment is currently €12,695 or treble the duty paid value of the goods, whichever is the greater, and/or a term of imprisonment not exceeding five years.