Government loses almost a billion euros in taxes ‘as black market tobacco sales explode’
Less than one-in-five illegal cigarettes were seized during 2024: RAS
Print30 April 2025
Government loses almost a billion euros in taxes as black market tobacco sales explode, noted Retailers Against Smuggling (RAS).
RAS has said the publication today (30 April) of the Revenue Commissioner’s Illegal Tobacco Products Research Survey 2024 proves that Government is losing the battle against Ireland’s booming market in illicit tobacco.
Cigarettes
Less than one-in-five illegal cigarettes were seized during 2024, research shows.
Today’s Revenue Commissioner survey finds that 37% of cigarette packs in circulation had no Irish excise duty paid as they were either illegal or purchased outside Ireland.
This marks an increase from 34% in 2023. 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%. The numbers indicate that the illicit trade in RYO tobacco has increased by 53% when compared to last year’s findings.
The Revenue Commissioner survey reveals that illicit market cigarettes accounted for 26% of cigarettes in circulation in 2024 and was worth over €590 million in lost taxes.
RAS estimates that a further €249 million was lost on the 11% travel purchases of cigarettes in 2024.
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.
RYO
Half of all Roll-Your-Own (RYO) tobacco in circulation had no Irish duty paid, RAS highlighted.
RAS estimates that a further €95 million was lost in taxes on RYO Tobacco in 2024.
Commenting on the findings, Benny Gilsenan, Spokesperson, RAS National, stated: “With €934 million in lost taxes on tobacco products, the scale of Ireland’s untaxed tobacco market is staggering – 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, a trend being allowed by a serious lack of enforcement of duty free and travel allowances.”
Further findings
Polling conducted by Ireland Thinks on behalf of RAS in November 2024 showed that a sizeable majority (58%) of those who bought cigarettes bought some or all of them from abroad, up from 45% in March 2024.
RAS’s concerns have been confirmed by the Revenue Commissioner’s survey which recognises “a notable increase in illicit trade attributed to informal imports sourced through friends.”
The survey found that the percentage who sourced cigarettes from “Friend brought them home from a trip abroad” nearly doubled from 15% in 2023 to 27% in 2024.
The regulated cigarette market in Ireland – for which excise duty was paid – had a total retail value €1.34 billion in 2024, meaning that black market cigarettes (making up the 26% of the cigarettes in circulation according to today’s survey) were worth over €550 million in 2024.
The Revenue Commissioners successfully seized €96 million in illegal cigarettes in 2024, meaning they seized less than one in five of all illegal cigarettes in circulation in Ireland last year.
‘Exorbitant excise rate’
RAS claim that Ireland’s exorbitant excise rate on tobacco, which is the highest in Europe, is fuelling the increase in black market activity.
“The Government has its head in the sand on the impact that the huge excise burden on tobacco is having on the legitimate market,” Gilsenan added.
“What’s worse, these 2024 Revenue figures only reflect the 2023 excise increase of 75 cents on cigarettes. In late 2024, Government lumped a whopping €1 excise on cigarettes.
“This means that the current levels are most likely much higher than the 2024 figures.
“The last three Revenue Commissioner illegal tobacco surveys have found the highest ever illicit figures recorded for tobacco in Ireland; year on year the problem is just growing, and legitimate retailers are losing out. In spite of this, Government lumped on the highest ever excise increase last year, it’s just a baffling response to this clear loss of control of the black market.”
RAS are calling on the Government to:
Freeze excise on cigarettes, which is already the highest in Europe, and is clearly fuelling tobacco smuggling;
Increase staffing and scanner resources to detect illegal tobacco being smuggled into Ireland, including through our airports through breaches of duty-free allowances;
Increase the fines and prison sentences for court convictions for illegal smuggling.
Read more: Retailers Against Smuggling welcome budget 2025 tax strategy paper
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