Dáil Éireann Debate, Wednesday - 23 May 2012
44 Deputy Brendan Griffin asked the Minister for Finance his views on the way his Department can prevent lost State revenue through the illicit tobacco trade; and if he will make a statement on the matter. [25416/12]
Amharc ar fhreagraThe illegal smuggling of cigarettes and other tobacco products and the illicit selling of these products is a problem for many tax jurisdictions throughout the world. Ireland has a longstanding policy, primarily because of health concerns and also for budgetary reasons, of high tobacco taxation, and this makes this State a particularly attractive market for tobacco smugglers. Easy access to Ireland via cheap flights from countries with significantly lower tobacco taxes accentuates the attractiveness of Ireland for criminals involved in the illegal importation and sale of tobacco.
The Revenue Commissioners are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco products. They attach a high priority to this area, and they continuously review their response to the problem and their effectiveness in tackling the illicit tobacco trade. The strategy employed by Revenue to tackle the illicit tobacco products 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 detection technologies, and optimum deployment of resources at point of importation and inland, in order 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. Since mid-2010, Revenue has conducted a series of nationwide intensive tobacco "blitz"-type operations, concentrating additional Revenue resources at ports, airports and at selected inland retail points, including markets, for the purpose of identifying and seizing illicit tobacco products. To date, Revenue has conducted ten such national tobacco "blitz" operations resulting in the seizure of over 35.2m cigarettes and 1,790 kgs of tobacco. These intensive operations are of course additional to Revenue's ongoing day-to-day operations targeting illicit tobacco product.
Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations. Revenue both provides and receives intelligence from other Customs Administrations and works closely with the European Anti-Fraud Office, OLAF, in its efforts to tackle the illicit sale of tobacco at an international level. This international cooperation and sharing of intelligence and expertise plays an important role in combating illegal tobacco smuggling on a global level.
In 2011, a total of 109m cigarettes with a retail value of €46m and 11,158 kgs of tobacco with a retail value of €4m were seized by Revenue. In addition to this Revenue has obtained one hundred and one convictions relating to cigarette smuggling, with fines of €136,300 imposed and thirty custodial sentences, of which twenty were suspended. There were a further fifty-seven convictions relating to the sale of unstamped tobacco products with fines of €115,850 imposed and thirteen custodial sentences of which seven were suspended.
In 2012 to date a total of 50m cigarettes with a retail value of €22m and 1,835 kgs of tobacco with a retail value of €0.7m have been seized by Revenue. In addition to this Revenue has obtained twenty-eight convictions relating to cigarette smuggling, with fines of €47,250 imposed and twelve custodial sentences, of which four were suspended. There were a further thirty-one convictions relating to the sale of unstamped tobacco products with fines of €66,100 imposed and six custodial sentences of which six were suspended.
