Loss of cigarette duty estimated at €600m

THE ORGANISATION that represents Ireland’s tobacco manufacturers has estimated that the loss of duty paid to the State will exceed €600 million this year.

The Irish Tobacco Manufacturers Advisory Committee has estimated that 30 per cent of all cigarettes bought in the State this year will have their duty paid elsewhere.

Some of those will be bought legitimately abroad from holidaymakers in countries where duty on cigarettes is low, such as Greece and Spain, but the majority will be illegally smuggled in.

Gardaí made a number of high-profile seizures of smuggled cigarettes last year, including €3 million worth of cigarettes on New Year’s Eve which were seized in Dublin Port. A further 10 million had been impounded at Dublin Port last November.

PJ Carrolls’ corporate affairs manager Chloe Campen said they expected the loss to the exchequer last year to be €556 million or 27 per cent of all cigarettes smoked last year. She said the trend in smuggled cigarettes had been upwards because of the recession.

The Irish Tobacco Manufacturers Advisory Committee estimates that smuggling will account for most of the 30 per cent of cigarettes where the duty will be paid out of State next year, leading to an estimated loss of €616 million.

The committee believes the problem of illegal smuggling should be tackled with a task force involving the gardaí, Revenue Commissioners, retailers, tobacco manufacturers and various Government departments.