The level of illegal cigarettes in Ireland was at its highest level in over a decade last year with almost 1 in 5 packs smuggled into the country, according to research by Revenue.
However, there is no evidence of any counterfeit tobacco products being sold to consumers in the Republic.
The latest annual survey commissioned by the tax authorities to assess the scale of illegal tobacco products being sold in the Republic found 19% of cigarette packs analysed last year were classified as illegal. It is the highest rate since the annual survey was introduced in 2009 and up from 17% the previous year.
Revenue has estimated the potential loss to the Exchequer from the consumption of 32.9 million illegal cigarette packs last year is approximately €422 million – up €38 million on 2022 estimates.
However, the survey found that none of the illegal packs detected last year were counterfeit cigarettes. The figure for counterfeit tobacco products had peaked at 7% in 2021.
The survey showed 99% of illegal packs analysed in 2023 were categorised as “contraband” – normal commercial brands of cigarettes which were bought either duty paid or duty-free abroad and smuggled into Ireland. The remaining 1% of illegal packs were “illicit whites” which are classified as cigarettes manufactured for the sole purpose of being sold illegally in another market.
The level of cigarettes brought into the country from abroad by smokers for personal use was also at its highest ever rate last year. The survey found 15% of cigarette packs were legal but without duty paid in Ireland which indicates they were legally purchased in another jurisdiction and brought into Ireland by the smoker.
The rate had been below 10% for most of the past decade. “The 2023 results suggest that the prevalence of both illegal and legal non-Irish duty paid packs has increased in recent years,” said Revenue.