Tax Justice SA outlines 5-point plan to stub out illicit cigarette trade Citizen reporter
Picture: ANA TJSA founder Yusuf Abramjee says the R8 billion lost in unpaid ‘sin’ taxes could have been used to procure Covid-19 vaccines.
Tax Justice South Africa (TJSA) has outlined a five-point plan to address the country’s illicit cigarette trade.
TJSA said the plan came after its investigation which blew the lid on how the trade of illicit cigarettes had “taken over South Africa’s mainstream market”, resulting in “criminals looting billions of rands needed to save lives and rebuild our nation”.
The investigation revealed that shops throughout the country were selling cigarettes that evade due taxes.
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Tax Justice SA has issued a report in the flourishing illicit cigarette industry in South Africa.
TJSA founder Yusuf Abramjee says illicit cigarette sales are costing government billions of rands in unpaid taxes.
Vendors appear not to fear law enforcement and many seem not to know or care about the minimum tax threshold.
The sale of illicit, tax-evading cigarettes has become endemic across South Africa in the wake last year’s 5-month Covid-19 lockdown blanket ban on tobacco trade, according to an undercover investigation and subsequent report by Tax Justice SA (TJSA).
TJSA’s undercover team visited over 40 mainstream retail and wholesale outlets across Cape Town, Johannesburg, Pretoria and Durban to secretly film cigarettes being sold at a price below the minimum tax that must be paid on them by law.
Last year, as President Cyril Ramaphosa announced an unprecedented lockdown to combat Covid-19, a ban prohibiting the sale of tobacco and alcohol products was enforced – much to the chagrin of many South Africans. Not only did this open the stage to the illegal cigarette trade, but it also resulted in billions of lost tax revenue. Tax Justice SA (TJSA) describes the illicit tobacco trade as ‘the biggest and most brazen black market in the world’. The organisation estimates that ‘two in every three cigarettes’ sold across the country is illegal. The lost tax revenue – amounting to around R8 billion – would be enough to purchase Covid-19 vaccines for half the population, says founder Yusuf Abramjee. – Jarryd Neves
South Africa saw more Covid-19 infections and deaths in one day than ever before
On Wednesday, 6 January, South Africa confirmed its worst Covid-19 24-hour toll yet, with more than 840 deaths in a single day, and about 21,800 people confirmed infections. This follows from the country’s highest number of excess deaths in a week – 6,840 – and most are thought to be due to Covid-19. As GroundUp reports: “It is highly likely that more than one in every 1,000 South Africans has already died of Covid-19.” On Tuesday, 5 January, more than a million people in South Africa had tested positive for Covid-19 in total.
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Former magistrate Deon Pool says it s unlikely SAB will overturn government s alcohol ban during the current Covid-19 spike.
The past 24 hour period confirms another 21,832 Cvid-19 infections in South Africa and 844 more deaths. The recent second alcohol ban was implemented to help mitigate the spread of the virus through large alcohol-fuelled superspreader events, as well as to free the country s hospitals to better cope with Cocie-19 patients.
But the country s largest producer of beer is preparing to take government to court over this latest alcohol ban.