Retailers warn Ireland’s illegal tobacco market continues to escalate

 as new survey shows record high levels of illegal and non-duty paid tobacco in circulation

– Retailers against Smuggling (RAS) says Ireland’s high excise rates are fuelling a boom in illicit trade

– Ireland’s untaxed cigarette market now worth €845 million

Retailers Against Smuggling (RAS) has said the publication of the Revenue Commissioners’ Illegal Tobacco Products Research Survey 2025 – independently conducted by Ipsos MRBI – proves the continued and alarming escalation of Ireland’s illicit tobacco market, with record levels of illegal and non-duty paid products now in circulation.

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.

Based on the findings from Revenue – and recent data from the Department of Finance – this means Ireland’s untaxed cigarette market is now worth €845 million*.

According to the 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:

“These finding 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

A reply to a parliamentary question from the Minister for Finance dated 28 April 2026 stated that the value of Ireland’s taxed cigarette market was €1.38 billion in 2025. If the taxed market accounts for 62% of all cigarettes in circulation, then the untaxed market – at 38% – is valued at €845 million.