Retail Ireland is calling for harsher sentences to be handed down to those operating on the black market.

A new report published this morning by the group has found that crime in these areas is costing the Exchequer €860 million a year.

Some of the major areas of losses are through fuel laundering, cigarette smuggling and retail theft.

It also says that 1 in every 8 litres of diesel sold in Ireland is sold illegally.

The group is calling for greater garda involvement to tackle retail crime and the black market.

Chairman of Retail Ireland is Frank Gleeson.

He says tax payer ends up footing the bill for these these crimes in the long run.

He spoke with Breakfast here on Newstalk.