Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

148. To ask the Minister for Finance the work that he and the Revenue Commissioners are doing to address the availability of illicit tobacco here; if he and the Revenue Commissioners have engaged with Northern Ireland Customs on this matter; the cost to the State in 2011, 2012, and to date in 2013 of illicit tobacco trade; and if he will make a statement on the matter. [44638/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised by the Revenue Commissioners, who are responsible for the collection of Tobacco Products Tax and for tackling the smuggling and sale of illicit tobacco products, that they view this criminal activity as a very serious matter. Accordingly, combating the illegal tobacco trade is, and will continue to be, a high priority for them. Revenue’s “Strategy on Combating the Illicit Tobacco Trade (2011-2013)” includes a wide range of measure that are designed to identify and target those engaged in the supply or sale of illicit tobacco products, with a view to seizing the illicit products and prosecuting those responsible. This multi-faceted strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and third country basis, ongoing review of operational policies, the use of analytics and detection technologies, and ensuring the optimum deployment of resources at both point of importation and within the country.

Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages. Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Revenue and An Garda Síochána also carry out regular multi-agency operations, particularly in relation to large maritime importations and in checks at inland markets.

There is extensive cooperation between Revenue and An Garda Síochána in combating the illicit trade. In addition, the relevant agencies in the State work closely with their counterparts in Northern Ireland, including Her Majesty’s Revenue and Customs and the PSNI, through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market.

I am assured by the Revenue Commissioners that they are committed to maintaining their extensive programme of action against all stages of the supply chain for illicit tobacco products, and that they will continue to make every effort to ensure that those involved in the illicit trade are brought to account before the Courts for their criminal activities. Determining the scale of any illegal activity, and the tax loss that it causes, is problematic, and estimates of such loss need to be approached with caution. Surveys on the incidence of the consumption of illicit cigarettes carried out in 2011 and 2012, for the Revenue Commissioners and the Health Services Executive, indicate losses of the order of €258 million and €240 million, in Tobacco Products Tax and VAT, in those years. A similar survey will be undertaken shortly and it is anticipated that the results will be available in the first quarter of next year.