The Government signalled its intention to crack down on the smuggling of cigarettes, alcohol and fuel by proposing a tenfold increase in the fines applicable to a number of excise offences.

People convicted on indictment will face fines of up to €126,970 once the Bill passes. Previously the maximum fine was €12,695.

The higher fine will apply to cases where the value of the goods is €250,000 or less. Above that threshold the maximum fine will be three times the value of the goods. The existing option for a prison term of up to five years remains.

A spokesman for the Convenience Stores and Newsagents Association said: “The tenfold increase in penalties...should act as a welcome deterrent to the criminals that are costing the State substantial loss in revenue, and legitimate tax-compliant retailers will welcome this new direction from the department.”