The impact of the illicit cigarette trade on the fiscus has been disastrous. In 2019, excise taxes on domestically produced cigarettes contributed R14-billion to government coffers. By 2023, the contribution of cigarette excise taxes decreased by 35% to R9-billion.
Sasfin’s chief executive, Michael Sassoon, pointed out that this is a claim for damages and has nothing to do with Sasfin’s tax affairs. Sasfin has concluded that the claim will not result in the recognition of any liability and does not affect its capital position.