Tax hikes ‘will spur illegal tobacco trade’

Raising taxes on cigarettes will boost the illegal trade and reduce revenue to the State, according to a Government report.

The study, carried out by the research branch of Revenue, said about 20% of cigarettes consumed in Ireland are not taxed here.

These cigarettes include those that are produced in or smuggled into Ireland and purchased illegally, and cigarettes that are bought legally in another country and sold here.