The Leitrim Observer and others on 9th October carried the report that Retailers Against Smuggling (RAS) say it is in no doubt that these excise increases, which make Ireland the most expensive place in the EU to buy cigarettes, only serve to further incentivise smuggling and undermine Irish retailers. The Budget added another 50c to the excise duty rate on tobacco, bringing the total cost of an average packet of cigarettes to €12.70. The move comes despite the Tax Strategy Group clearly stating in July that an increase in excise duty on tobacco would not generate any additional revenue, given the resultant levels of smuggling. The Revenue’s own 2017 Tobacco Survey is said to have shown that the total amount of illegal cigarettes smoked in Ireland rose to 13%.
