Catherine Murphy (Kildare North, Independent)
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Question 57: To ask the Minister for Finance his plans to add new penalties including minimum fines for the sale of illicit tobacco products; and if he will make a statement on the matter. [27807/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that it is an offence, under section 78 (as amended) of the Finance Act 2005, to offer cigarettes for sale other than in packs to which the appropriate tax stamp is affixed in the prescribed manner. Where a person is convicted of such an offence, the Courts may impose a fine or a term of imprisonment, or both. Where a conviction occurs following a summary prosecution, the fine that may be imposed is €5,000. For convictions following prosecution on indictment, the applicable fine is an amount not exceeding €126,970 or, where the value of the excisable products concerned is greater than €250,000, not exceeding three times the value of the products.

The fine that applies in the cases of conviction following summary prosecution was last increased in 2008. The fine on conviction following prosecution on indictment was increased substantially by the Finance Act 2010. That Act also brought the penalty that applies where a case is dealt with under section 13 the Criminal Procedure Act 1967 into line with that for summary convictions.

The fine to be imposed in a particular case is, of course, a matter for the Courts. Section 130(2) of the Finance Act 2001 permits a trial judge, in his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount so mitigated is not greater than 50% of the amount of the fine.

The question of possible changes to the penalties for tobacco-related offences will be considered in the context of the Finance Bill 2012, in consultation with the Revenue Commissioners.