Joan Burton (Dublin West, Labour)
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Question 32: To ask the Minister for Finance the expected loss to the Exchequer in 2010 due to cigarette smuggling; his views on the increases in the financial penalties for smugglers; and if he will make a statement on the matter. [44895/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I have previously stated in response to a number of Parliamentary Questions, it is not possible to provide a reliable estimate of the loss to the Exchequer as a result of cigarette smuggling. This arises from the fact that there is no proven internationally recognised method for determining such an estimate.

The Revenue Commissioners have given a tentative estimate that up to 20% of cigarettes consumed in the State in 2008 were untaxed in this State. However, this estimate included both smuggled cigarettes and cigarettes legally purchased outside of the State for personal consumption here. While most cross-border purchases involve travellers arriving from Spain, Portugal and certain Eastern European countries where tobacco prices are low, Northern Ireland is also a destination for cigarette purchasers.

I am informed by the Revenue Commissioners that the penalties for smuggling cigarettes and tobacco products into Ireland are as follows:

· On summary conviction, the penalty is a fine of €5,000 and/or a term of imprisonment not exceeding 12 months. The trial judge may mitigate the monetary fine by up to 50%.

· On conviction on indictment, the penalty is a fine of three (3) times the value of the cigarettes inclusive of all taxes and duties, or €12,695, whichever is the greater; and/or a term of imprisonment not exceeding 5 years. The trial judge may mitigate the monetary fine by up to 50%.

In the case of offering for sale/keeping for sale or delivering packs of cigarettes which do not have the requisite tobacco tax stamp affixed thereto, the penalties are as follows:

· On summary conviction, the penalty is a fine of €5,000 and/or a term of imprisonment not exceeding 12 months. The trial judge may mitigate the monetary fine by up to 50%.

· On conviction on indictment, the penalty is a fine not exceeding €12,695 and/or a term of imprisonment not exceeding 5 years. The trial judge may mitigate the monetary fine by up to 50%.

In addition to the above, the cigarettes or tobacco products, along with the carrying conveyance concerned, are liable to forfeiture.

Of course, as the Deputy is aware, the precise penalty imposed on conviction in each individual case is a matter for the Court.