Illicit Tobacco Trade Could Be Costing The Economy As Much as €697 Million, Report Finds
Published on Mar 27 2014 2:37 PM in Retail
A study by Grant Thornton has found that the illicit tobacco trade is costing the Irish economy between €294 million and €697 million, with the loss to the Exchequer between €240 million and €575 million.
The report, 'Illicit Trade: an Irish and Global Challenge', launched today, places both a low estimate value and high estimate value on the cost of the illicit trade to the economy. It found that a 'limited government response and continued weak penalties for violations of the law' mean that overall high estimate losses are valued at €1.53 billion, 3% higher than last year.
The illicit tobacco trade costs the economy anywhere between €294 million (low estimate) and €697 million (high estimate) per year.
The report argues that while 'the 2010 Criminal Justice Act has improved the regulatory environment, money laundering activity remains a threat to Ireland’s reputation as a financial centre and is benefiting criminal gangs'.
“Our research estimates that illicit trade in fuel and tobacco alone is as much as €337 million, with much of this going into criminals’ pockets," said report author and Grant Thornton partner Brendan Foster.
© 2014 - Checkout Magazine by Stephen Wynne-Jones