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Ireland Has The Third Highest Illegal Tobacco Trade in Europe Source from: TheJournal.ie 03/31/2014 
Ireland's illegal tobacco trade shows no sign of abating. We have the third highest trade for non duty tobacco in Europe, behind only Latvia and Lithuania. However both Baltic states have decreased their Non Duty Paid (NDP) levels since 2012 while Ireland has stayed at 28.3 per cent. It costs €9.40 for a pack of 20 cigarettes here, the second highest price in Europe. The UK is slightly higher at €9.94 yet their NDP level is just 15.5 per cent, down from 21.5 per cent in 2012.
Why here? So if the UK can reduce their illegal tobacco trade with a higher cigarette price than us, why can't we? A spokesperson for the Irish Tobacco Manufacturers Advisory Committee said, "As an island we should be dealing with this problem a lot easier then we are. There is no doubt the high cost of legitimate tobacco is pushing more people to the illicit trade but unless the government seriously address the problem by taking an integrated approach through the proposed informal working group on illicit trade, then the problem will only get worse.
The link between high price and high NDP levels is strong with Ireland and France having some of the highest prices in the EU and also ranking third and fourth within Europe's illegal tobacco trade. Ireland is also one of the highest taxed for tobacco products with approximately 78 per cent of the price going to Government in excise and VAT. The Irish Tobacco Manufacturers Advisory Committee criticised the Government's plan for plain packaging; Legislation such as plain packaging will increase the illegal trade in Ireland. Fines must also be increased, the average fine in 2013 was €2,600, this is not acting as a deterrent to criminal gangs who are reportedly generating profits of €3 million per week. As a country that considers itself a leader in tobacco control the Government needs to do much more to deal with the black market. Enditem Related Updates |
