Cigarette smuggling needs to be tackled says Retailers Against Smuggling (RAS)
‘Staggering’ increase of black market selling of cigarettes
CIGARETTE smuggling needs to be tackled by the Irish State, according to advocacy group Retailers Against Smuggling (RAS).
The group attributes the “staggering” increase of black market cigarettes to the “continual raising of tax on tobacco.”
Tobacco revenue declined from €1.32bn in 2020, to just €976m in 2023.
The Department of Finance’s Tax Strategy Group (TSG) Papers for 2026 found that increases to excise duties “may not lead to increased revenue” for tobacco.
RAS believe excise increases are instead fuelling a booming black market.
The group submitted a pre-budget submission calling for a freeze on excise and a request for resources to improve enforcement and detect illegal tobacco being smuggled into Ireland.
They also want to see an increase in fines and prison sentences for smuggling offenders.
The group cited a Revenue Commissioner survey published in April, which revealed a whopping 37 per cent spike in illicit market cigarettes.
In a statement, the group said: “No Irish excise or VAT has been paid on any of these cigarettes and Retailers Against Smuggling is concerned that many of these ‘legal’ cigarettes are being brought in breach of duty-free and travel allowances.”
RAS estimates that a further €95m was lost in taxes on RYO Tobacco in 2024, bringing the total taxpayer losses on tobacco products to €934m in one year alone.
RAS National Spokesperson Benny Gilsenan said: “As admitted by the Government in the latest Tax Strategy Group Papers, it is clear that increasing excise on tobacco products is not only having no effect on smoking rates – and it’s taking business away from legitimate Irish retailers.
“It has become clear it is no longer a financially viable approach, and it is time for the Government to focus on tackling illicit trade, rather than taking measures which affect legitimate retailers and the taxpayer.”
