AT LEAST 700 retail jobs were lost last year due to the continuing trade in illegal cigarettes on the black market, the Oireachtas Committee on Finance heard yesterday.
Benny Gilsenan of Retailers Against Smuggling, an organisation which has almost 3,000 members, said its members were competing against black market cigarette sales which, at €3.20 a pack, cost a fraction of what retailers charged legitimately.
The group said about €420 million was lost in excise duty and revenue to the State in 2010, while retailers lost out on €575 million in revenue due to illegal cigarette sales in the same period.
He said the group was proposing that a minimum fine of €10,000 be set to deter the trade in illegal cigarette sales.Illegal sellers were now distributing door-to-door flyers advertising cheap cigarettes.
Mr Gilsenan said retailers felt that the problem would only get worse due to the recent increase in VAT.
Kevin Humphreys TD (Labour) said there had been a commitment by Minister of State Brian Hayes that he would look at bringing in further measures to combat cigarette smuggling in the upcoming Finance Bill.
