Dáil Éireann debate -
Tuesday, 17 Oct 1995

Vol. 457 No. 1

Written Answers. - Finance Act, 1994.

Seamus Brennan

Question:

73 Mr. S. Brennan asked the Minister for Finance if it is intended that section 74 of the Finance Act, 1994, will take account of cigars and tobacco, including roll your own; if not, the reason therefor; and if he will make a statement on the matter. [14819/95]

Seamus Brennan

Question:

74 Mr. S. Brennan asked the Minister for Finance the reason the Revenue Commissioners do not appear to have had success in detecting the open illegal selling of tobacco products outside social welfare offices and other public areas in Dublin; if he will agree that the delay in implementing section 74 of the Finance Act, 1994, gives these unauthorised vendors a period of freedom from the attention of Revenue staff; and if he will make a statement on the matter. [14820/95]

Seamus Brennan

Question:

75 Mr. S. Brennan asked the Minister for Finance if he will consider amending section 74 of the Finance Act, 1994, to take account of cigars and tobacco, including roll your own in view of the fact that a significant part of the illegal street selling of tobacco includes these products; and if he will make a statement on the matter. [14821/95]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 73, 74 and 75 together.

I am satisfied that the Revenue Commissioners are fully alert to the situation concerning the sale of tobacco products, without payment of the appropriate taxes, by street traders both in Dublin city and elsewhere. This problem continues to be tackled with vigour and success.

The Commissioners have, since the beginning of this year, seized approximately 28 million cigarettes and over 600 kilogrammes of tobacco. Revenue also liaise with the gardaí who have additional powers under the Casual Trading Act and joint operations to detect illegal street trading in tobacco products have taken place.

The introduction of tax stamps on cigarettes was provided for in the Finance Act, 1994. Since September last, all packs of cigarettes produced in or imported into the State and put up for retail sale must have a tax stamp affixed.

Section 74 of the Act makes it an offence to offer cigarettes for sale or delivery within the State other than in a pack or packets to which a tax stamp, on which duty at the appropriate rate has been paid, is affixed. A person who is guilty of an offence in relation to tax stamps will be liable, on conviction, to a penalty of £1,000 in respect of each conviction. In addition, any goods or vehicle involved are liable to forfeiture.

To allow time, however, for stocks of unstamped cigarettes to clear through the retail system, the legal provision making it an offence to offer unstamped packs of cigarettes for sale or delivery will not come into operation until March of next year. In the meantime, however, Revenue officers remain empowered to seize tobacco products on which the appropriate taxes have not been paid and to prosecute offenders.

The possibility of extending the tax stamp system to tobacco products other than cigarettes is provided for in section 78 of the Finance Act, 1995. It is intended that tax stamps for roll-your-own tobacco will be introduced in 1996 following discussions with the industry. Any further extension of stamping to products such as cigars will be considered in the light of experience of, in particular, illegal sales of such products.

I am satisfied that the introduction of tax stamps will greatly strengthen the power of Revenue staff in the detection and prosecution of offenders including street sellers. Furthermore, I am satisfied that the ongoing use of existing powers by the Revenue Commissioners, combined with the use of techniques such as risk analysis, intelligence gathering and profiling with a view to identifying import routes and distributors as well as liaising with the gardaí in relation to illegal street trading will continue to show results in combating illegal sales.