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Tobacco Smuggling

Dáil Éireann Debate, Wednesday - 18 September 2013

Wednesday, 18 September 2013

Questions (217)

Brendan Griffin

Question:

217. Deputy Brendan Griffin asked the Minister for Finance the amount allocated annually towards reducing the illicit tobacco trade, counterfeit and illegal; the amount the State estimates is lost in tax revenue because of this trade; and if he will make a statement on the matter. [37977/13]

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Written answers

I am advised by the Revenue Commissioners that Revenue has approximately 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These staff are deployed across a number of compliance and enforcement programmes that reflect the strategic and business priorities set out in its Statement of Strategy and Annual Corporate Plan. These programmes include anti-smuggling controls, audit, assurance checks, debt management, investigations, prosecutions and anti-avoidance interventions. Resources are continuously redeployed across these programmes in response to the Commissioners' assessment of risk. It is not possible, therefore, to disaggregate the resources deployed exclusively on tackling the smuggling and sale of illicit tobacco products.

Regarding the Deputy’s question on lost revenue, I am advised by the Revenue Commissioners that determining the scale of any illicit activity and the associated loss to the Exchequer is problematic, and that any estimates of such losses need to be viewed with caution. I understand that a survey in respect of 2012 carried out for the Revenue Commissioners and the Health Services Executive found that the level of consumption of illicit cigarettes would indicate a notional loss of the order of €240 million in excise duty and VAT in that year, if the consumption of illegal cigarettes were replaced fully by taxed consumption.

Tackling the illicit tobacco trade remains a key objective for Revenue. In the period from January to July 2013, some 24 million cigarettes were seized and 60 court convictions were secured for cigarette smuggling and illegal tobacco sales. Revenue’s Strategy on Combating the Illicit Tobacco Trade (2010-2013), which is published on www.revenue.ie, includes a range of measures designed to complement each other in identifying and targeting the supply and demand sides of the market for illicit tobacco products, with a view to seizing the illicit products and prosecuting those responsible. Key elements of Revenue’s strategy include developing and sharing intelligence on a national, EU and international basis, developing analytics and detection technologies, and ensuring optimum deployment of resources at both point of importation and inland in order to intercept and seize illegal products and to detect and prosecute those involved. In carrying out this important work, Revenue works in close co-operation with other relevant agencies, both nationally and internationally.

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