A ban on displaying tobacco products in stores is putting money from tills straight into the pockets of criminals, shopkeepers claimed today.
Retailers Against Smuggling (RAS) said cigarettes sales have fallen dramatically in recent months with the black market fuelling job losses and costing the industry and hundreds of millions of euros.
It maintained cigarette sales can be as high as 40 per cent of a retailer’s annual turnover.
William Hanley, RAS spokesman, said the Office of Tobacco Control’s (OTC) point of sale ban has practically wiped out the legal tobacco trade.
“Criminals are costing our industry hundreds of millions every year and we are staring down the barrel of thousands of job losses throughout the country,” said Mr Hanley.
“The display ban in my shop has taken money out my till and put it in the pocket of the criminal.
“Sales have fallen dramatically since 1st July.”
The point of sale display ban came in to force in July, with shop owners caught flouting the law facing a fine of €3,000 or six months in prison.
The OTC, which maintained it was a pioneering move to prevent underage smoking, recently revealed 97 per cent of stores were complying with the law.
Revenue’s Customs Service recently revealed it has seized approximately 75 million cigarettes with a retail value of approximately €30.5 million so far this year.
“I would like to know what the OTC is doing to regulate those criminals who are selling smuggled and counterfeit cigarettes on the black market,” continued Mr Hanley.
“We need to work with the likes of the OTC to ensure the issue of tobacco smuggling is dealt with efficiently.
“It is having such a disastrous affect on our livelihoods, something needs to be done fast.”
Separately, one of the world’s largest cigarette makers, Philip Morris Ltd (PML), and Donegal retailer Maurice Timony recently launched a High Court challenge to overturn the display ban legislation.
They claim the regulation threatens business, fuels the smuggling of contraband cigarettes, and restricts their ability to provide trade and services, violating Irish constitutional law and EU.
PA
