ILLEGAL cigarette seizures reached record-breaking levels this year as Customs officers smashed a number of major smuggling operations.
They confiscated 215 million cigarettes worth €90m in the first 11 months of the year -- with one 120 million seizure the biggest in EU history.
This marked a substantial rise in the volume of cigarettes seized this year, compared with 135 million last year.
Tobacco smuggling is the biggest fraud, in terms of revenue, against EU countries, according to the European Commission's anti-fraud office.
However, it is predicted the number of seizures will increase next year as Customs has stepped up the fight with the purchase of a second mobile scanner, at a cost of €2.3m.
The scanner can examine the inside of containers and uses sophisticated software to produce high-quality images.
Revenue believes one in every five cigarettes in the country is not taxed. But cigarette manufacturers claim untaxed cigarettes account for at least a quarter of all smoked in Ireland and may cost the State as much as €500m in lost revenue.
Operations
Revenue's Ursula O'Neill said the high number of seizures was an indication of the number of attempted cigarette smuggling operations coming through Ireland.
"Our excise duties are the highest in Europe, and as long as that is the case we are always going to be a target.
"But some of the seizures we are seeing are intended for the UK market," she said.
Deirdre Healy, a spokeswoman from manufacturer John Player, said there had been an increase in people attempting to sell counterfeit cigarettes on the black market.
The company was made aware of two instances in recent days -- one in Mullingar, Co Westmeath, the other in Drogheda, Co Louth -- where people were leafleting homes offering 200 cigarettes for around €40. This compares with €8.40 for a pack of 20 John Player Blues in a retail outlet.
Finance Minister Brian Lenihan last week let the duties on tobacco stand, as he admitted the high price was giving rise to tobacco smuggling.
There have been 154 convictions to date this year -- 140 for smuggling and 14 for illegal selling in shops -- with prison sentences imposed in 10 cases.
More than 27 million illegal cigarettes, worth more than €11.7m, have been confiscated at Dublin Airport -- down slightly on both 2008 and 2007 levels.
Tax receipts on cigarettes soared by 66pc when Latvia and Lithuania joined the EU in 2004, with people buying cheaper cigarettes to sell in countries with higher excise duties, Revenue said.
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