Retailers are calling on the government to take tougher action on those caught smuggling cigarettes.

A group will meet this evening to discuss the damage contraband cigarettes are having on trade and business.

It wants the Government to introduce a minimum fine of €10,000 for people caught selling smuggled cigarettes and to clamp down on markets where they're sold.

The retailers say the illegal cigarette trade is flourishing in Dublin with a potential loss to business of €500m.

One of the reasons being blamed for a surge in illicit trading is the price of a packet of cigarettes. The group wants the Health Minister to reconsider plans to further increase the cost.

Spokesman for the group, Retailers Against Smuggling, Benny Gilsenan, says those measures are essential to stop a trade he says has become rampant. 

The meeting on Monday will also be attended by a number of Government TDs, gardai, councillors and Revenue officials.