Simnikiwe Hlatshaneni British American Tobacco South Africa has denied using its report to divert attention from the OCCRP report, contending that the allegations in that report are being dealt with. Picture: iStock Smaller tobacco companies are at loggerheads with cigarette giant British American Tobacco South Africa (BATSA), with both parties accusing each other of anti-competitive behaviour. This follows the release of two reports into the tobacco trade, one compiled by data company Ipsos and another by the Organised Crime and Corruption Reporting Project (OCCRP). The latter detailed damning findings on smuggling and organised crime attributed to a number of multinational cigarette manufacturers in West Africa, particularly British American Tobacco (BAT) through its South African subsidiary, BATSA. The Ipsos r
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Nearly three-quarters of retail outlets in Free State, Gauteng and Western Cape are selling illicit cigarettes: Ipsos. 11:18
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Image: Suzanne Plunkett, Bloomberg News
A study commissioned by British American Tobacco SA (BAT) â said to be free of interference from BAT â suggests the cigarette market has been given over to black marketeers, with four out of five outlets surveyed in the Free State offering smokes at below the minimum collectible tax (MCT) of R21.61 for a pack of 20.
Any pack of 20 cigarettes selling below the MCT of R21.61 is deemed to be illicit. Some packs were selling for as little as R10 and even R6 â meaning no tax could have been paid on these cigarettes.
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The announcement of an 8% increase in excise duties - affecting tobacco products - saw the domestic market flooded with untaxed cigarettes.
A survey commissioned by British American Tobacco SA shows that nearly three-quarters of retail outlets in Gauteng, the Western Cape, and the Free State are openly selling illegal cigarettes.
These cigarettes are selling for as little as R8 for a pack of 20 sticks - compared to the legal minimum collectable tax of R26.61.
The domestic market was flooded with illegal cigarettes following the announcement of an 8% hike in excise duties which affects tobacco products, a survey shows.
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