Latest estimates from the business sector have revealed that the Irish economy is loosing up to €300 million a year through illegal business.
The Small Firms Association (SFA) said the figures indicates that there has been an increase in goods being sold on the black market.
Director of the SFA, Pat Delaney, said this level of illegal trading has put huge pressure on legitimate traders and he has called on the Gardai to clampdown on the industry this Christmas.
"What we want to see is a very visible, high level campaign in the lead up to Christmas, when we believe over €300m worth of contraband goods will be sold in the Irish economy.
"It's a very serious issue. In the longer term of course we need to see a very co-ordinated approach to clamp down once and for all on illegal operators"