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A Customs official shows tobacco seized during a raid last year. Retail Ireland believes illegal tobacco sales are costing the State over €500 million a year. James Horan/Photocall ireland

Black market and retail crime 'costing Ireland €861m a year'

Retail Ireland says one-eighth of all diesel sold in Ireland is illegal, while one in six people have made illegal downloads.

RETAIL CRIME and black markets are costing the Irish government about €861 million a year – a figure that is set to rise, a new report has said.

A report compiled by IBEC sub-group Retail Ireland says shoplifting, fuel smuggling, and the sale of smuggled cigarettes are all taking their toll on Exchequer income.

The group is calling for a zero tolerance approach to retail theft and smuggling, including a system of rewards for whistleblowers who reveal illegal practices elsewhere.

The report believes the State is losing €526 million a year through illegal tobacco, which is smuggled into Ireland and sold without any government taxes or duties. The group estimates that almost a quarter of cigarettes sold in Ireland are sourced from the black market.

Fuel laundering costs an estimated €155 million in tax losses – based on estimates that one in every eight litres of diesel sold in Ireland is illegal.

Shoplifting and other forms of retail theft cost about €110 million, presumably through lost VAT income.

Petrol theft loses €3.5 million for the State, while counterfeit goods contribute a loss of €62 million.

The report also estimates that 770,000 people – approximately one-sixth of the entire population of the Republic of Ireland – have engaged in some sort of illegal music or movie downloading. This has cost €4.5 million to the Exchequer alone, the report suggests.

Among the recommendations in the report are to cut back on Garda allocations for routine road traffic policing so that further resources can be put into tackling illegal trades.

The report also suggests that people found guilty of any activity that results in a loss to the Exchequer should have the value of that loss deducted from their current and future State benefits.

“An awareness campaign should be launched alerting taxpayers about the additional burden they have to pay because of the criminal actions of a few,” it also adds.

In full: Retail Ireland’s report on the black market (PDF) >

Read: Senator calls for crackdown on €250m-a-year illegal cigarette market

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59 Comments
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    Mute Sean Byrne
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    Nov 2nd 2021, 5:47 PM

    Abolish the LPT occupied home tax and implement the law taxing over 183,000 vacant homes. https://www.money.co.uk/mortgages/empty-homes

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    Mute D. Memery
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    Nov 2nd 2021, 6:22 PM

    @Sean Byrne: as you have linked to a UK site is the law you refer too applicable to the UK or Ireland?

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    Mute Lee King Buckett
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    Nov 2nd 2021, 6:44 PM

    @D. Memery: Maybe you should actually read the article first? It’s quite interesting in fairness.

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    Mute Sean Byrne
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    Nov 2nd 2021, 7:03 PM

    @D. Memery: Ireland; There is a Vacancy Tax under the Urban Regeneration and Housing Act, 2015. Under this Act, from 1 January 2017 each local authority is obliged to introduce a vacant site register. With impunity, many councils refuse to comply with this law. As an example, reported in the 2016 census, County Galway had 10’279 vacant properties. The link at the bottom of this page; http://www.galway.ie/en/services/planning/planspolicy/vacantsites/ points to; http://www.galway.ie/en/media/Vacant%20Sites%20Template.docx, which is an empty template document and not a vacant register.

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    Mute D. Memery
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    Nov 2nd 2021, 7:54 PM

    @Lee King Buckett: I did, but the article doesn’t make any mention of a vacant property tax, hence why I asked as a follow on to the link. Did you read the article?

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    Mute D. Memery
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    Nov 2nd 2021, 7:55 PM

    @Sean Byrne: thanks

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    Mute Lee King Buckett
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    Nov 2nd 2021, 8:00 PM

    @D. Memery: Yes I did – it’s a source for the 183,000 vacant properties the OP referred to.

    There’s no mention of any tax whatsoever in there nor did the OP mention any law at all so your comment confused me.

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    Mute Neuville-Kepler62F
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    Nov 3rd 2021, 8:06 PM

    @Sean Byrne:
    Revenue are guilty of maladministration by their coercing people to pay this despicable tax on their family homes which is contrary to all Canons of Taxation.

    Revenue don’t collect taxes on other basic needs like : food, water, medicines, education, healthcare, clothes etc .. so why tax shelter (family homes) … a basic human need, essential to life.

    Macron has just removed Tax Habitation on homes in France …
    The Irish need to wake up …
    https://www.change.org/p/abolish-property-tax-on-family-homes

    3
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    Mute Quiet Goer
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    Nov 2nd 2021, 6:20 PM

    Time to get rid of this silly recession-era tax. Fine Gael lied back in 2011 before they got into power saying they wouldn’t bring in property tax and as soon as they had a nice juicy five year mandate they brought it in anyway.

    The entire ‘local’ thing is just propaganda, money goes to a central pot to pay for Zappone parties and national debt

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    Mute lelookcoco
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    Nov 2nd 2021, 6:38 PM

    @Quiet Goer: Most countries have a similar tax. Lived in France for years and paid two different property/local taxes.

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    Mute Declan Doherty
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    Nov 2nd 2021, 6:49 PM

    @lelookcoco: Most counties provide services for the taxes that are collected. We pay again privately for our services here. You’re comparing apples and oranges.

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    Mute Jason Walsh
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    Nov 2nd 2021, 8:24 PM

    @lelookcoco: and it covers bins and other services for the property

    35
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    Mute Thomas O' Donnell
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    Nov 2nd 2021, 8:44 PM

    @Declan Doherty: All taxes pay for services. That’s how state finances work.

    6
    Reg
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    Mute Reg
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    Nov 2nd 2021, 9:32 PM

    @Jason Walsh: Ask our UK neigbours how much they’re paying. Our LPT and bin charges come nowhere near their council tax and they get billed for water too.

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    Mute Claudia Varell
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    Nov 3rd 2021, 8:29 AM

    @Reg: It’s okay to get billed for water, when there is a supply with clean water you can drink from the tap and accurate waste water treatment.

    1
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    Mute Reg
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    Nov 3rd 2021, 11:55 AM

    @Claudia Varell: I’m not against the principle of water charges Claudia, simply pointing out the difference in household charges between the UK and Ireland.

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    Mute Zack Twamley
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    Nov 2nd 2021, 6:26 PM

    If 70% have yet to file for it, this looks like it could become another Water Tax. I hope it does.

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    Reg
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    Mute Reg
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    Nov 2nd 2021, 7:32 PM

    @Zack Twamley: Or the age old habit of leaving things to the last minute. The vast majority already pay their LPT.

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    Mute Thomas O' Donnell
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    Nov 2nd 2021, 8:49 PM

    @Zack Twamley: If it does it’ll have to be replaced with a different tax

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    Mute Declan Doherty
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    Nov 2nd 2021, 6:53 PM

    “It is morally wrong, unjust and unfair to tax a persons home” – Enda Kenny, 1994

    This tax on family homes should never have been accepted. The only reason FG got away with it was because they got revenue to do their dirty work.

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    Mute Thomas O' Donnell
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    Nov 2nd 2021, 8:50 PM

    @Declan Doherty: Surely Revenue collecting taxes is their job?

    21
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    Mute Neuville-Kepler62F
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    Nov 3rd 2021, 7:51 PM

    @Declan Doherty: Agree.

    —– RURAL HOME OWNERS —–

    What Rural Home Owners get for their LPT Property Tax

    No Mains Water
    No Public Sewage system
    No Street Lighting
    No Footpaths
    No Cycle Lanes
    No Buses
    No DART
    No Luas
    No Public Parks
    No Subsidised Theatres

    https://www.change.org/p/abolish-property-tax-on-family-homes

    if You sign the petition an email is sent to Michael Martin …

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    Mute Neuville-Kepler62F
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    Nov 3rd 2021, 8:00 PM

    @Thomas O’ Donnell:

    Revenue don’t collect taxes on other basic needs like : food, water, medicines, education, healthcare, clothes etc .. so why tax shelter (family homes) … a basic human need, essential to life. Revenue are guilty of maladministration by their coercing people to pay this despicable tax on their family homes which is contrary to all Canons of Taxation.

    Macron has just removed Tax Habitation on homes in France …
    The Irish need to wake up …
    https://www.change.org/p/abolish-property-tax-on-family-homes

    2
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    Mute Tony Mcgrath
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    Nov 2nd 2021, 7:17 PM

    Rang helpline today on 4 occasions told they were busy and ring back latet

    37
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    Mute Leonard O'mahony
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    Nov 2nd 2021, 6:44 PM

    The self assessment element of filing is difficult for people.This causes reluctance .

    35
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    Mute Jason Ebbs
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    Nov 2nd 2021, 6:51 PM

    @Leonard O’mahony: yep. My dad is 80 and this is actually worrying him, even with me doing it. He’s convinced that if he doesn’t pay enough his house will be taken. He’s band 5 and he wanted to pay band 6 just to be safe. It’s a horrible tax. It’s practically two weeks off his pension.

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    Mute Roy Dowling
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    Nov 2nd 2021, 7:20 PM

    @Jason Ebbs: My dad was the same. I had everything filled out he wanted to change it to higher band saying it’s better they owe him than him underpaying.

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    Mute Watchful Axe
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    Nov 2nd 2021, 7:26 PM

    @Leonard O’mahony: There is a bit of a nuisance factor to it. They should have tied it in with An Post to allow people who don’t have a computer to take away a simple form with a free post envelope to return.

    Even if they were worried about doing a bit of work, they could have posted a simple card out to each eircode with a punch hole system and a signature. They could have put the cards through a machine for tallying the bands against the eircodes with the signature checked if someone complains. (and this governmental big data trend is a disgrace, it’ll be a drop of blood for the DNA in twenty years time)

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    Mute Neuville-Kepler62F
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    Nov 3rd 2021, 8:02 PM

    @Jason Ebbs:

    Macron has just removed Tax Habitation on homes in France …
    The Irish need to wake up …
    https://www.change.org/p/abolish-property-tax-on-family-homes

    2
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    Mute Tony Mcgrath
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    Nov 2nd 2021, 7:17 PM

    Rang helpline today on 4 occasions told they were busy and ring back later

    16
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    Mute a
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    Nov 2nd 2021, 7:39 PM

    @Tony Mcgrath: 8 times?

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    Mute Gerard Heery
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    Nov 2nd 2021, 11:03 PM

    Endentured slave tax to the grave

    14
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    Mute Philip Cullen
    Favourite Philip Cullen
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    Nov 2nd 2021, 8:30 PM

    Why would anyone voluntary register for this ridiculous tax.

    28
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    Mute Neuville-Kepler62F
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    Nov 3rd 2021, 7:53 PM
    2
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