Carol Nolan (Offaly, Independent)
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127. To ask the Minister for Finance to outline his response to the increase in illegal tobacco products in circulation in Ireland, and the increased tax losses to the exchequer; and if he will make a statement on the matter. [53051/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that it uses a range of measures to tackle the sale of illicit tobacco, including online sales. 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, which includes analysis of online activities, 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, detector dog teams and maritime cutters, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs. I am aware that Revenue expects its new Customs cutter, which will replace the RCC Suirbhéir, to come into full service in October 2025. Furthermore, as part of the redevelopment of Rosslare Europort, a new high energy X-ray gantry system will be deployed in 2025. This is the first high energy X-ray gantry system to be deployed in the State and is expected to enter service before year end.

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 bodies including OLAF (the EU’s anti-fraud agency), Europol and the World Customs Organisation. Revenue monitors trends in the illicit tobacco trade, both nationally and internationally, 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 optimises media engagement in terms of prosecutions outcomes, significant seizures and enforcement initiatives, ensuring the general public is aware of the commitment by Revenue to tackling the illicit cigarette and tobacco trade and to deter those involved. To further encourage the general public to engage with Revenue in its efforts targeting the shadow economy and the supply of illegal tobacco products, Revenue includes a message on all press releases relating to tobacco products notifying that businesses or members of the public can contact Revenue in confidence on the free phone number 1800 295 295 at any time.

Revenue has achieved significant outcomes in tackling the illicit tobacco trade. Each year Revenue publishes in its Annual Report the volume and market values of tobacco seizures. A summary of cigarette and tobacco seizures is provided in the tables below.

Cigarettes

Tobacco

To the end of September 2025, Revenue seized over 40.6m cigarettes, valued at €36.6 million, and 21,599kg of tobacco, valued at €19.0 million. 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 and in Co. Louth in March 2025. These detections were as a result of intelligence-led operations and follow-up investigations are ongoing nationally and internationally.

Since 2009, Revenue and the HSE’s National Tobacco Control Office have jointly commissioned surveys among smokers to estimate the volume of non-Irish duty-paid cigarettes consumed in Ireland. Since 2013, this includes a separate survey on roll-your-own (RYO) tobacco. The results of these surveys along with the survey methodology are published on Revenue’s website. The most recent survey conducted by Ipsos MRBI indicates that 26% or 45.2 million cigarette packs consumed in Ireland in 2024 were illicit, based on the estimated total cigarette consumption for 2024. This represents a notional loss to the Exchequer of approximately €590 million (Excise and VAT). This is viewed as a notional loss as it assumes that the illegal cigarettes consumed displaced the equivalent full tax paid quantity of cigarettes, which is unlikely to be the case.

A summary of the illegal cigarette survey for the last number of years is provided below.

The Government has been consistent in its strong support for ensuring that Revenue has the necessary resources and statutory powers to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration.

I am satisfied that Revenue is very alert to the threat that the illicit tobacco trade poses to health, legitimate business and the Exchequer.