Nearly one in three cigarettes smoked in Cork ‘could be contraband’

Nearly one in every three cigarettes smoked in Cork city and county could be contraband, according to a survey which points to massive losses to Revenue from smuggling.

Figures point to a significant rise since 2011 in the amount of tobacco with unpaid duty coming into the region.

The Irish Tobacco Manufacturers’ Advisory Committee is demanding a fine of up to €100,00 for anyone involved in illegal trading or tobacco smuggling.

According to the group, illegal gangs targeting Ireland are reportedly generating profits of €3m per week.

In the second quarter of 2011, 7.9% of discarded packets examined in the Cork region showed no excise duty was paid on them. That figure increased dramatically to 24.6% towards the end of 2011.

However, it has since risen to 27.9% in the final quarter of 2013.

Some of the packets could have been legitimately brought into the country by holidaymakers who would be entitled to avoid duty.

But the suspicion remains the vast majority of the cigarettes are being smuggled in from Eastern Europe and south-east Asia.

Market Survey Intelligence undertook the survey on behalf of the ITMAC.

A spokesman for the group said the rise in figures in Cork was just one example of how tobacco, on which no Irish tax was paid, continued to thrive across the country.

“There is a growing availability of tobacco on the black market, on streets and through door-to-door sales all across Ireland, this is certain. The ease at which illegal tobacco is available to anyone, irrespective of age, who has the power to purchase it, is shocking.”

Ireland has the second highest average price for a pack of 20 cigarettes in the EU at €9.40, with Britain slightly ahead on €9.94.

Genuine cigarettes retail at less than €1 for a 20 pack in Belarus.

Counterfeit ones are being manufactured in China on an industrial scale and are even cheaper — which shows the massive profits smugglers can make.

However, ITMAC is very concerned that some of the Chinese-manufactured cigarettes are not quality checked like legitimate brands and could pose health risks.

Ireland, however, is also one of the highest taxed countries for tobacco products with approximately 78% of the price of every packet of cigarettes going to Government in excise and Vat.

In Cork, a smuggled pack of well-known branded cigarettes can cost around €4-€5, making it very attractive to the purchaser.

“The increase in excise in the last budget will certainly have displaced more people from the legitimate market to the illegal market, but when criminals are selling this product at half the price with none of the regulations, it makes it easier for the consumer to purchase,” the ITMAC spokesman said.