State Losing €860m to Black Market, Says Retail Ireland

Source from:  RTÉ News 08/21/2012

A report from Retail Ireland also said that a quarter of all cigarette sales are on the black market, while 12% of diesel sold is illegal. The lobby group has urged more garda resources to confront the problem and a zero-tolerance approach to offenders. Retail Ireland commissioned the report to put a shape on the impact of recession on retail crime, which it estimates causes a loss to the State coffers equivalent to around 6% of the annual PAYE tax take. IBEC said the cost to the State of tobacco smuggling is €526m, while fuel laundering costs the State €155m. In addition to high levels of cigarette and fuel smuggling, the report from EPS Consulting estimated that 770,000 individuals in Ireland have downloaded music and films illegally. It also noted that attempts to import counterfeit goods have increased by up to 25% during 2010. However, the Irish Cancer Society has accused the tobacco industry of overstating the level of illegal cigarette smuggling. It said the figure used by Retail Ireland to suggest that 25% of cigarettes sold in the Irish market are sourced illegally is actually 14%, according to official figures from the Revenue Commissioners. Kathleen O'Meara of the Irish Cancer Society said the tobacco industry consistently inflates the figure in pre-Budget submissions to make an argument against increased taxes. In addition to a tougher jailing policy and diverting garda resources away from traffic policing towards counterfeiters, smugglers and thieves, IBEC wants those caught to forfeit State benefit payments to the value of the loss in VAT and surcharges to the Exchequer from their criminal activities. It also wants rewards of €10,000 for whistleblowers. Retail Ireland said that such is the scale of lost revenue to the State, that it would be money well spent in terms of the return to be had in confronting those criminals involved. It warned that if unchecked, the Exchequer is in line to lose more than €4bn in the next five years. Enditem