Jack Chambers (Dublin West, Fianna Fail)
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Each year since 2009, Revenue, in conjunction with the ’s National Tobacco Control Office, has commissioned Ipsos MRBI to conduct independent market research among smokers about the source of their cigarettes. The survey is an independent research study into illegal tobacco products behaviour patterns, the purpose of which is to estimate the volume of non-Irish duty paid cigarettes being consumed in Ireland. Since 2013, this cigarette research has been complemented by an additional survey on roll your own tobacco.

The key findings of the 2023 survey are:

• 19% of the cigarette packs held by smokers surveyed were classified as illegal
• 15% of the packs were found to be legal but non-Irish duty paid
• 20% of pouches of roll your own tobacco held by smokers surveyed were classified as illegal
• 12% of the pouches were found to be legal but non-Irish duty paid.

Of the 19% of cigarette packs found by the survey to be illegal:

• 99% were classified as contraband (i.e. normal commercial brands of cigarettes bought duty paid or duty-free outside the country and smuggled into Ireland)
• 1% were classified as “illicit whites” (cigarettes manufactured for the sole purpose of being smuggled into and sold illegally in another market).

I am assured that Revenue is committed to targeting the illicit tobacco trade and implements a range of measures to identify and target the smuggling, supply or sale of illicit tobacco, including duty free tobacco in excess of duty-free allowances, 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. Revenue keeps its operational requirements and arrangements regarding the deployment and use of detection technology and resources, including a suite of x-ray scanners, electronic risk analysis tools and maritime cutters, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.

The smuggling of tobacco products has a transnational and cross border dimension and in addition to Revenue’s ongoing cooperation with An Garda Síochána in this area, Revenue also works closely with its counterparts in other jurisdictions including colleagues in Northern Ireland through the Cross Border Joint Agency Task Force (JATF) and international including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation.

In its efforts to detect the importation of excess duty-free goods, Revenue uses a combination of risk analysis, profiling, intelligence, screening of checked-in and carry-on baggage and the deployment of its detector dog teams. Focused, risk-driven compliance projects are also undertaken in respect of breaches of duty-free limits.

I am pleased to acknowledge that Revenue has achieved considerable success in tackling the illicit tobacco trade. In 2023, Revenue had 5,164 seizures of cigarettes valued at €55.7m and 1,673 seizures of tobacco with an estimated value of €7.7m. To the end of August 2024, Revenue had 3,335 seizures of cigarettes valued at €73.1 million and 1,077 seizures of tobacco valued at €30.6m. Further successes, highlighting Revenue’s approach to the illicit tobacco trade include the detection and dismantling of an illicit commercial cigarette factory in Dublin in February 2024.

Revenue’s high detection rate is attributable to its multi-faceted tobacco strategy, continued cooperation and intelligence sharing with other national and international law enforcement agencies and its advanced profiling methods and strategic use of appropriate detection technology and assets.

While the Government has ensured through the Finance Acts over the years that Revenue has the necessary statutory powers to tackle the illicit tobacco trade, I am open to considering proposals from Revenue that will address new or emerging risks which cannot be addressed through the current and significant legislative framework in place in regard to tobacco smuggling.

Finally, I am assured that Revenue is very alert to the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer and I commend Revenue and all the relevant State agencies for their work in this important area.

With regard to any potential decision in the context of Budget 2025, the Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the budget, on any tax matters that might be subject to budget decisions.

Jack Chambers (Dublin West, Fianna Fail)
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In coming to a decision on any policy matter I will of course take all strands of relevant considerations into account including impacts on public health, the environment, social impacts and the exchequer.

However, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the budget, on any tax matters that might be subject to budget decisions.