I 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 they attach a high priority to this issue. The 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 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.
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 basis.
In 2010 and 2011 seizures of cigarettes were, respectively, 178.4 million and 109.1 million. Seizures of other tobacco products in those years were 3,367 kilograms (2010) and 11,158 kilograms (2011). Seizures to date in 2012 amount to 91.4 million cigarettes and 4,041 kilograms of tobacco.
I am informed by the Revenue Commissioners that their office and the Tobacco Control Unit of the Department of Health commissioned surveys in 2009, 2010 and 2011 to establish the level of the illicit trade in tobacco. The surveys for 2009 and 2010 estimated that 20% of cigarettes consumed in the State had not been taxed in this jurisdiction. This figure was further broken down as 14% illicit product and 6% legally imported by passengers arriving into the State from other jurisdictions. These findings were based on the 2006 Census population figures. By applying the most up to date population data, the 2011 census population figures, which have recently become available, IPSOS MRBI have now revised the illicit percentages to 16% for 2009 and 15% for 2010. The recently published results from the IPSOS MRBI survey for 2011 indicate that illicit consumption accounted for 15% of the market.
The illegal trade in tobacco products is a serious threat to the Exchequer and to legitimate businesses and the Deputy can be assured that the Revenue Commissioners will continue their extensive work against smugglers and sellers of illicit products. My Department will continue to liaise closely with Revenue on the matter.
