CRIMINALS INVOLVED in selling counterfeit cigarettes have reached a “new level of sophistication” in evading detection and are producing the most faithful reproductions of cigarette packets yet seen, Revenue has said.
For the first time, counterfeit cigarette packets are being found in retail outlets with the dual health warning in both Irish and English.
“Test purchases of cigarettes conducted by Revenue’s Customs service during June and July indicate that counterfeit cigarettes with false Irish tax stamps were on sale at different locations throughout the country,” said a Revenue spokesman.
“What is new about these detections is the dual health warnings in Irish and English. This is a new level of sophistication in counterfeiting.”
Products have been found at eight retail outlets. This excludes detections made at market stalls and street sellers. The loss to the exchequer on a pack of 20 cigarettes retailing at €8.47 was €6.71 in excise duty and VAT, he said.
The news comes as one of the biggest tobacco and cigarette suppliers in the State, JTI Ireland, formerly Gallagher Dublin, announced it had taken the unprecedented step of ceasing supplies to a midlands retailer believed to have been selling a counterfeit version of one of its brands.
JTI (Japan Tobacco International) Ireland supplies such brands as Benson and Hedges, Silk Cut, Mayfair and Camel.
Martin Southgate, JTI Ireland’s general manager, said that recently received reports “revealed a worrying trend of counterfeit cigarettes starting to infiltrate legitimate retail outlets”.
He said JTI would adopt a “zero tolerance” approach to retailers suspected of stocking counterfeit goods.
The midlands retailer, which the company would not identify due to possible legal proceedings, came to its attention when three customers returned packets of cigarettes to JTI, complaining about poor quality.
“We know in 2008 20 per cent of cigarettes purchased here were purchased on the black market. That’s €387 million in lost revenue to the exchequer,” said the Revenue spokesman.
“We are convinced that has risen this year to 25 per cent of cigarettes purchased this year, or €526 million – that’s almost half a billion euros – in lost revenue.”
