Dáil Éireann Debate, Tuesday - 20 September 2011
118 Deputy Robert Dowds asked the Minister for Finance the extent of tobacco smuggling here at present; the extent of seizures of illegal tobacco over the past year; and his plans to tackle this crime. [24659/11]
Amharc ar fhreagraI am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco products, that there is no internationally recognised method for precisely determining the amount of tax lost as a result of the illicit trade in cigarettes. However, on the basis of a 2009 & 2010 survey carried out independently on behalf of Revenue and the Office of Tobacco Control, Revenue estimates that approximately 20% of cigarettes consumed in the State had not been taxed in this jurisdiction. It is important to emphasise that this estimate includes both illicit cigarettes and legal cross-border purchases brought into the State for personal consumption. Revenue would further tentatively estimate that this figure of 20% comprises 14% illicit product and 6% legal cross-border purchases. In 2010 Revenue's strategy resulted in the seizure of a total of 178m cigarettes with a retail value of approximately €75m and 3,342kg of tobacco with a retail value of approximately €1.2m. For the period January to August 2011, a total of 77.9m cigarettes with a retail value of approximately €32.8m and 6,683 kg of tobacco with a retail value of approximately €2.4m have been seized.
The Revenue Commissioners regard the tackling of the illicit trade in cigarettes and tobacco products to be a high priority area. They have established a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax and to oversee and optimise the detection of counterfeit and contraband tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include adoption of a comprehensive tobacco strategy and action plan.
This strategy employed by Revenue to tackle this illicit trade is multi-faceted. It includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and deployment of detection technologies, optimum deployment of resources at point of importation and internally to intercept the contraband product and to prosecute those involved.
Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages. Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations and in checks at inland markets.
In July 2010, Revenue launched a series of nationwide tobacco ‘blitz' type operations, which concentrated additional Revenue resources at ports, airports and at various inland retail points, including markets for the purpose of identifying illicit tobacco products. To date, Revenue has conducted seven tobacco blitz operations that have resulted in the seizure of in excess of 33.2m cigarettes. Another two large-scale nationwide operations are scheduled to take place during the last quarter of 2011.
