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THE GOVERNMENT WILL lose over €580 million in VAT and excise to the illegal cigarette market this year according to figures released by the Irish Tobacco Manufacturers Advisory Committee (ITMAC) ahead of next week’s budget.
The figures, which are compiled from the most recent CSO and EU Eurobarometer statistics, show that over 1.6 billion of the cigarettes smoked in Ireland this year will be non Irish duty paid (NIDP) meaning that the Irish economy will lose over €730 million to the illegal tobacco market by the end of the year.
The committee said the statistics also show that the rate of non Irish duty paid (NIDP) cigarettes in Ireland has gone up from 24.5 per cent in 2011 to 28.2 per cent this year.
Of the 28.2 per cent non Irish duty paid tobacco consumed in Ireland, approximately 18.4 per cent of this is illegal. This means that criminals will make over €230 million this year from illegal tobacco in Ireland, or over €640,000 per day according to the ITMAC.
Figures released by the committee today included:
A spokesperson said that last year the government increased VAT and excise again and the illegal tobacco market has soared.
“The government is trying to achieve two things, decrease smoking rates and increase revenue from legitimate markets and the statistics show that currently they are achieving neither with the predicted tax take from tobacco down by over €80million and the consumption rate at 29 per cent as it has been for 5 years,” the spokesperson said. “Any increase will make this worse and solve nothing.”
The spokesperson added that illegal cigarettes are available in every town and city across the country with consumers “choosing to pay €4.50 to criminals and contribute to local gangs” rather than pay €9.20 in a local shop and contributing to the Irish economy.
“There is no doubt right now that the criminals are winning hands down and the Government is losing.”
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A credit to these workers and their families who seemed to be doing most of the protesting,picketing and online campaigning themeslves ,very proud to be Irish because of them this week.
The important lesson here is that the people stood together, they stayed loyal to each other and their strength came from themselves. They did this for us, for employees that may be in a horrible situation like they have been in the past few months.
They have set a precident for all. It’s not what they received in money in the end, it was people power. I wish them well in their future and I hope it’s a good and positive one.
Hooray! And they should get double nay treble for the trouble they had to go to in order to achieve their rights.
Up the workers – up the workers – up the workers.
Its great that they got a result, well done to all involved and those that supported them all over the world through social networks….. People power is alive and kicking
Just a question? Why didn’t we get a list of the main customers of Vita Cortex customers so we could arrange a boycott unless it is sorted.
Get them where it hurts.
Credit to the VC32 and their families for standing strong through thick and thin for what was right not just for them but for every worker in the country.
Brilliant United bunch – now if we hold together in the Referendum – we too can teach Government and Europe a lesson in not taking the Irish Population for granted as being austerity mugs for the Bankers and inept Politicians !
Fair f?!?! To you all- got what u were entitled to- fair play
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