Alan Farrell (Dublin Fingal, Fine Gael)
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82. To ask the Minister for Finance the efforts being made to tackle the sale of cigarettes on the black market in view of rising costs; and if he will make a statement on the matter. [51594/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that they use a range of measures to tackle the sale of illicit cigarettes on the black market. At the core of these measures is identifying and targeting the smuggling of illicit tobacco products into the State, with a view to disrupting the supply chain, seizing the products and, where possible, prosecuting those involved. Revenue’s strategy involves developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis. In that context, I am aware that Revenue monitors trends in the illicit tobacco trade on an ongoing basis and adjusts its actions and redeploys its resources in response to new developments or methodologies employed by the criminal gangs involved in that trade.

Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2020, it seized 48.2 million cigarettes valued at €32.8 million. In the same year, it obtained 35 summary and one indictable conviction relating to the sale of illicit tobacco, with fines of €83,500 imposed. In addition, there were 8 convictions relating to tobacco smuggling in 2020, 4 of which were on indictment, with fines of €10,000 imposed.

To the end of September 2021, Revenue seized 42.4m cigarettes valued at €30m. In addition, it obtained 22 summary convictions relating to the sale of illicit tobacco with fines of €51,750 imposed, and 8 summary tobacco smuggling convictions with fines of €20,000 imposed.

The smuggling of tobacco products is an illegal transnational activity.  The production and distribution of illicit cigarettes crosses international boundaries. In response Revenue, in conjunction with national and international partners, undertake a programme of activity to counter those involved in such illegal activity. Considerable success has been achieved internationally as a result of the Revenue programme of work in this area. In June 2021, Revenue identified illicit movements of raw tobacco and engaged in international operations that led to the seizure of 6.5 tonnes of tobacco in Glasgow and the identification and dismantling of a counterfeit hand-rolling tobacco factory in Stoke-on-Trent.  In July 2021, as a result of a significant operation between Revenue and Her Majesty’s Revenue and Customs (HMRC), an illicit cigarette manufacturing facility was identified in Northern Ireland, leading to the seizure of 1.6 million cigarettes and 11 tonnes of tobacco along with non-tobacco materials used in the manufacturing process.

In addition, Revenue engages in joint operations with international partners, including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation in countering the activities of those involved in the illicit international tobacco trade.

I am satisfied that Revenue is very conscious of the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer. I commend Revenue and all the relevant State agencies for their work in this important area and I am satisfied that there is an appropriate focus on tackling this form of criminality.