According to a report by the Irish Mirror on August 8th, a recent study by the Irish Revenue revealed that the quantity of illegally smuggled cigarettes in Ireland reached the highest level in a decade last year, with nearly one-fifth of cigarette packs entering the country through smuggling.
The latest annual investigation commissioned by the tax authorities in Ireland assessed the scale of illegal tobacco products sold in the country. It found that 19% of cigarette packs were classified as illegal last year, an increase from 17% the previous year.
The tax authority estimates that the consumption of 32.9 million illegal cigarette packs last year resulted in a potential loss of around 4.22 billion euros to the national treasury, an increase of 38 million euros from the 2022 estimate.
However, the investigation found that none of the illegally packaged cigarette packs detected last year were counterfeit cigarettes. The percentage of counterfeit tobacco products reached a peak of 7% in 2021.
A study has shown that in 2023, 99% of the analyzed illegal cigarette packs were classified as "smuggled goods", meaning they were ordinary commercial brand cigarettes purchased legally in another country and then smuggled into Ireland without paying taxes. The remaining 1% of illegal cigarette packs were classified as "counterfeit cigarettes", which are manufactured to be sold illegally in another market.
The quantity of cigarettes brought into the country by individual smokers from overseas last year also hit a record high. A survey found that 15% of cigarette packs were legal but not taxed in Ireland, indicating they were purchased legally in other jurisdictions and brought into Ireland by smokers.
In the past decade, this proportion has mostly been below 10%.
The tax office stated that "The results from 2023 indicate that the prevalence of illicit and legal non-duty paid cigarette packs has increased in recent years in Ireland.
Furthermore, last year it was found that 20% of the analyzed rolled tobacco products were classified as illegal, while an additional 12% were legal but had not paid Irish taxes. In 2023, tax officials in their efforts to combat illegal trade seized 6837 individual cases, amounting to a total value of 63.4 million euros in tobacco products.
The seized items included 69.5 million illegal cigarettes valued at 55.7 million euros, as well as 10191 kilograms of tobacco valued at 7.7 million euros.
The tax office stated that
We are targeting various stages of the illegal tobacco trade supply chain, identifying and cracking down on smuggling, production, distribution, and sales of such products in order to achieve our seizure targets, and prosecute those responsible when possible.
The tax office stated that many criminal activities surrounding illegal tobacco trade have transnational and cross-border dimensions, so their officials are collaborating with the European Anti-Fraud Office (OLAF), Europol, the World Customs Organization (WCO), and the Irish police force (An Garda Síochána).
Finance Minister Michael McGrath stated last year that the government has ensured that the tax authorities have the legal powers necessary to combat illegal tobacco trade through various Finance Acts over the years. The total excise tax revenue from tobacco products sold in Ireland last year was 8.379 billion euros, a decrease of 16% or 1.55 billion euros from the previous year.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
