Martin Heydon
Ceist:55. Deputy Martin Heydon asked the Minister for Finance his plans to introduce codentity in view of the increase in cigarette smuggling here; and if he will make a statement on the matter. [54720/13]
Amharc ar fhreagraWednesday, 18 December 2013
Ceisteanna (55)
Freagraí scríofa
I am advised by the Revenue Commissioners that the introduction in Ireland of a system of the type indicated by the Deputy would be unlikely to assist in tackling the problem of cigarette smuggling in Ireland. As the Deputy notes, this is type of track and trace system which seems to be applicable to legitimate production and may be more relevant in countries where cigarettes are manufactured. The tax status of cigarettes in Ireland, regardless of where they are produced, is identifiable immediately by the presence or absence of the proper tax stamp on the packet. This system works very effectively in relation to legitimate supplies of cigarettes in Ireland. Cigarette smuggling is a global problem estimated to account for some 11% of consumption world-wide and it is not clear how the introduction of further controls in the domestic market alone would assist in tackling the illegal distribution of untaxed cigarettes smuggled from a variety of source countries.
The Deputy may wish to note that the World Health Organisation's (WHO) Protocol against the illicit trade in tobacco products, agreed in November 2012 and shortly to be signed by Ireland is designed to offer a global approach to tackling the illegal trade, through strict rules and controls on the supply and movement of tobacco products.
It stipulates that all those engaged in the tobacco supply chain must conduct due diligence on their customers. The aim is to ensure that sales reflect a real and legitimate demand, and to eliminate the creation of excess supply which could be used in the black market. It is further expected that a global tracking and tracing regime for all tobacco products will be set up within five years of the Protocol's implementation.