Retailers Against Smuggling (RAS) have today launched their pre-budget submission ahead of Budget 2026. The RAS pre-budget submission, which was hand-delivered to the Department of Finance today by retail representatives from Dublin and Limerick, includes detailed proposals to:
- Introduce a freeze on Tobacco Product Tax
- Recruit 250 additional frontier staff and purchase additional scanners to detect illegal tobacco and to enforce duty-free and travel allowances
- Increase the fines and prison sentences for court convictions for illegal smuggling
RAS has said the recent publication of the Revenue Commissioner’s Illegal Tobacco Products Research Survey 2024 proves that Government is losing the battle against Ireland’s spiralling market in illicit tobacco. The survey found that 37% of cigarette packs in circulation had no Irish excise duty paid as they were either illegal or purchased outside Ireland. In the case of the Roll-Your-Own tobacco market, the proportion of products in circulation with no Irish duty paid was a staggering 49%. Based on Revenue's survey, RAS estimates the retail value of Ireland’s untaxed market is now worth a staggering €790 million.
The Revenue Commissioner’s survey further concludes that the scale of illegal cigarette sales in 2024 resulted in €590 million in lost taxes to the exchequer. RAS estimates that a further €249 million was lost on the 11% travel purchases of cigarettes, and a further €95 million lost in taxes on RYO Tobacco resulting in an astounding €934 million in lost taxes in 2024.
Speaking as he hand-delivered the RAS pre-budget submission to the Department of Finance, Dublin retailer and RAS National Spokesperson Benny Gilsenan stated:
“Ireland’s black market in tobacco is spiralling out of control – and it’s taking business away from legitimate Irish retailers.
“One of the main reasons Ireland’s untaxed cigarette market has grown so large is because continuous increases in excise are driving people to purchase the cigarettes from the black market or abroad. What’s worse, the latest Revenue figures don’t reflect the whopping €1 excise on cigarettes in last year’s budget.”
“We are calling on the Government to take tough and decisive action in Budget 2026 to protect legitimate retailers from tobacco smuggling and the out-of-control black market in tobacco. This needs to include a freeze in excise to tobacco to try to halt the flight of consumers to the black market and to allow the Government and Revenue Commissioners to get on top of the problem before it gets any worse.”
