The Irish Small & Medium Enterprises Association (ISME) today claimed that Irish shoppers heading abroad are killing Irish jobs, undermining local businesses and robbing the Irish economy of millions of euro in unpaid taxes.
Isme also condemned what it said was the "blind eye" attitude of the Government and Customs to the level of consumer products brought into the State by Irish people on foreign shopping trips, particularly from US cities, in the run-up to Christmas.
According to Isme chief executive Mark Fielding, it is estimated that over €1billion worth of products are brought into the country by Irish shoppers from foreign destinations, "with little or no intervention by Customs & Excise". He said the loss to the Exchequer is in excess of €300 million.
“As Irish retail sales plummet, the level of product being brought in illegally tax-free is having a serious impact on local shops and suppliers who are being undercut and ‘losing out’ on business," Mr Fielding said.
He continued: "The Government, true to form, have turned a blind eye, which encourages this illegal activity and once more sells small business down the river. Each illegally filled suitcase is another job lost."
“While the association firmly believes that freedom of choice is essential for all shoppers, it is galling that the customs authorities are not clamping down on the levels of product that are brought into the country illegally," Mr Fielding added.
According to recent Central Statistics Office figures, Irish residents spent €1,799.2 million on foreign travel in the 2008 second quarter - up just over 4 per cent from the same period last year.
