Fines for cigarette smuggling ‘derisory’, says McGrath

Sharp rises in penalties for cigarette smuggling are vital because the fines are "derisory" and smugglers have no fear of the law, according to Fianna Fáil finance spokesman Michael McGrath.

He called for a minimum fine of €130,000 and/or 12 months imprisonment for a summary offence and seven years for an indictable offence or fines of at least €1.25 million where the impounded product was worth more than €250,000.

Mr McGrath said the sale of illegal cigarettes in the State was quite open, particularly in Dublin. “I have always found it quite unbelievable that on certain streets in Dublin anyone can walk around and buy illegal cigarettes. It’s just not good enough.”

Sinn Féin finance spokesman Pearse Doherty said buying cigarettes on the black market was an illegal act "but for many it has been normalised".

“People who never think of breaking the law do not see it as breaking the law, defrauding the State or Revenue when they buy packs of cigarettes for €3 or €3.50.”

Minister of State Fergus O’Dowd rejected the proposal on increased fines and said it could have “unintended consequences”. If the accused could not afford to pay the full fine judges would be forced to impose long custodial sentences, most of which would be suspended. “The result would be that no fines would be imposed or prison sentences served.”

Mr O’Dowd added that the current €5,000 fine was the maximum applicable in the District Court.

They were debating amendments to the Finance No 2 Bill dealing with taxation of stamp and excise duties.

The legislation was passed by 70 votes to 43.

Mr McGrath said existing legislation on smuggling "is not bad and the courts have the power to impose fines greater than are being imposed, which is why the amendment seeks to increase what are inadequate fines".

'No fear of the law'
He said: "People have no fear of the law and this amendment would go some distance in addressing the issue."

Independent TD Richard Boyd Barrett opposed the 10 cent increase in the budget on a 20-pack of cigarettes.

A smoker himself, the Dún Laoghaire TD, said the increase was not a health measure but a budget measure "to grab money and it is one that largely hits the least well-off, as do so many tax increases on commodities people buy, whether they are good or bad for their health".