Cigarette smuggling 'costing State more than €500m'

Retail Ireland has said the loss to the Exchequer through cigarette smuggling is more than €500m.

The estimate came to light after the Revenue Commissioners and the Office for Tobacco Control sources said that more than 20% of all cigarettes consumed here are smuggled.

Retail Ireland - which is part of IBEC - said cigarette smuggling was seriously damaging the public finances and is calling for Government action.

Director of Retail Ireland Torlach Denihan urged smokers not to buy smuggled cigarettes and reminds them that it is against the law to do so.

He added that smugglers needed to be hit with the maximum penalty permitted by law.