Off-trade

Illegal tobacco boom drives Ireland’s untaxed cigarette market to €845 million

Retailers say Ireland’s high excise rates are fuelling a boom in illicit trade

Retailers Against Smuggling (RAS) has recently warned that Ireland’s illicit tobacco crisis is continuing to spiral, with the country’s untaxed cigarette market now estimated to be worth €845 million* following the publication of the Revenue Commissioners’ Illegal Tobacco Products Research Survey 2025 – independently conducted by Ipsos MRBI – which shows record levels of illegal and non-duty paid tobacco products now in circulation.

The figures are even more startling for Roll-Your-Own tobacco, with 45% of RYO in circulation being either illegal or non-duty paid

The survey finds illegal and non-duty-paid tobacco in circulation has hit a record high, with 38% of cigarettes in circulation being either illegal (28%) or legal but without duty paid in Ireland (10%).

The figures are even more startling for Roll-Your-Own tobacco, with 45% of RYO in circulation being either illegal or non-duty paid.

According to today’s survey results, the level of tax loss in 2025 from illegal cigarettes was found to be €645 million, up from €590 million in 2024, highlighting the worsening scale of the crisis facing both the Exchequer and Irish retailers.

RAS national spokesperson, Benny Gilsenan, stated:  “Today’s findings are stark. Ireland is awash with tobacco products that have no tax paid on them in this country because they are being bought illegally or being brought into the country from cheaper markets.

“The Government’s approach to Ireland’s tobacco market is driving unintended consequences, largely as a result of exorbitant excise rates, which are pushing consumers towards cheaper alternatives.

“When legal products are priced out of reach, consumers are drawn to illicit, untaxed tobacco.

“Criminal networks are the clear winners, while legitimate retailers – our local convenience stores and newsagents – are the big losers.”

In response to today’s survey finding, Retailers Against Smuggling have called on the Government to:

  • Freeze the excise rate on tobacco products in Budget 2027
  • Oppose EU plans to equalise excise rates on Roll Your Own tobacco which would further drive up the price in Ireland – at a time when 45% of the market is untaxed
  • Commence a similar survey of illegal and non-duty-paid products

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