There was very welcome news on two fronts this week from Revenue and Customs regarding their intention to enforce restrictions on Personal Allowances for Tobacco Products immediately and that they are currently investigating and targeting suspected non-compliant businesses operating in the Vaping and mobile phone repair sector.
https://www.midwestradio.ie/news/new-restrictions-on-cigarettes/
We would hope that they will extend their interest in the shadow economy to manual car washes, “American Candy” stores and the proliferation of barber shops that have sprouted up across Ireland in the past decade.
CSNA has long sought action against what we believe to be a widespread abuse of travellers Personal Allowances for tobacco products coming from other EU Member States. We are also minded that Duty Free purchases in the UK are frequently being made in excess of restricted permissible levels.
Members hardly need reminding that the huge variation in retail prices of tobacco products in all EU countries when compared to Irish prices has led to an enormous gap in tax take for Revenue (and lost sales for tax-compliant retailers).
They are freely admitting the problem has led to a third of all cigarettes consumed in Ireland not contributing to the Exchequer, and half of all Roll-your-Own similarly disposed.
Revenue are now saying that any person bringing in excess of their Personal Allowance will suffer the forfeiture of their ENTIRE tobacco purchase. If they attempt to bring back 1200 cigarettes, they won’t just lose the 400 that is in excess of the 800 permitted, Customs will adopt the view that the importation is for commercial gain and will seize the entire 1200 load.
This is no doubt a very welcome move and although it was first sought by the Association in 2005 when the problem was in its infancy, we are happy to see concrete measures being rolled out to tackle what is known as “tobacco tourism”.
On the issue of the shadow economy, a gentle description of tax evasion, we are very pleased to note that moves continue to identify and seek compliance from a number of operations that are active in direct competition with legitimate businesses.
Our members have no fear of competition, what disturbs them is unfair trading as it will always undermine compliant businesses such as ours. We are very familiar with the extremely high costs of opening and running a business in Ireland.
When we become aware that rogue businesses are ignoring laws, rules and regulations that we all are obliged to follow, it is understandable that we become angry and outraged when we find “competitors” flouting the laws and their societal responsibilities.
There are several instances across a raft of different business modules where staff have been exploited and subjected to what can only be described as slave conditions. Planning laws, employment laws, environmental and food safety requirements are ignored to enable their ability to gain an advantage over legitimate businesses.
We are aware that several businesses continue to ignore their obligations to only sell compliant vaping products.
There is a huge illegal solid fuel trade throughout Ireland. Despite approaches to Revenue that they investigate, compliance is vested in Local Authorities so they defer to them.
Many members running expensive car washing facilities find that their competition is not another similar outlet, it is the proliferation of manual washes with numerous staff.
Re-Turn continues to receive complaints from both the public and ourselves that there continues to be an abundance of non-compliant cans and bottles sold in certain styles of businesses.
While in some Local Authority areas, the planning enforcement people act decisively to ensure compliance from unauthorised developments (food trucks, coffee trailers etc), others seem to adopt a laissez-faire approach and ignore the effect such operations are having on legitimate competing businesses.
If you consider that your business is being unfairly affected by what you understand to be an unregistered/unregulated “business”, please let us know.
Similarly, if you have suspicions that illegal sales of tobacco or vaping products are taking place in your locality, FREEPHONE 1800 295295
