Customs report major rise in seizures of contraband tobacco.
Customs officers have reported major increases in illegal tobacco seizures after confiscating 53m contraband cigarettes and 9,836kg of roll-your-own tobacco worth nearly €30m last year.
The number of cigarettes seized was considerably up on the 40.8m confiscated in 2013. There was also a notable increase in roll-your-own tobacco seizures, which accounted for 4,203kg in 2013.
Ireland has the highest tobacco prices in the eurozone, with 80% of the cost of every packet of cigarettes sold going to the exchequer.
Last October, despite warnings that increasing the tax on cigarettes would lead to more smuggling, Minister for Finance Michael Noonan slapped a further 40c on a packet of 20.
According to Igor Dzaja, general manager of Japanese Tobacco International (JTI), the biggest tobacco seller in Ireland, the high cost of legitimate products “has created an environment where organised crime gangs can generate huge profits at little risk”.
Mr Dzaja said his company “applauds the tireless work of the Revenue Commissioners and supports them in their efforts”, but sudden and steep tobacco tax hikes influence consumers’ choices, leading them to buy cheap, illegal tobacco.
“Such increases are warmly welcomed by cigarette smugglers who already see Ireland as a lucrative target,” Mr Dzaja said.
Garda sources have indicated that major organised crime gangs and subversives are getting increasingly involved in tobacco smuggling because vast profits can be made and if caught the penalties are paltry compared to importing drugs.
Source: Sean O’Riordan, Irish Examiner, 16/01/15
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