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Black market for cigarettes still thriving - led by Zim's Gold Leaf


During South Africa’s strictest national lockdown, a ban on alcohol and tobacco fanned the fires of a large and lucrative black market for cigarettes. The South African National Treasury data show the government lost R9.5bn in alcohol and tobacco taxes in the first four months of the 2020 fiscal year. A report funded by the country’s Tobacco Institute showed that two years before the ban, the country already had one of the world’s largest illicit markets for tobacco products. In December last year, a SARS official and two accomplices were charged with corruption and defeating the course of justice over a seized truck and contraband, which was allegedly cleared to pass over the Beitbridge border crossing from Zimbabwe. The contents of that truck were estimated to be worth R10m. On Sunday, more Remington Gold cigarettes were seized, this time the load was worth R13m. Tax Justice SA founder Yusuf Abramjee says the bust is proof of the findings released in a report by Ipsos, whi ....

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BATSA, Fita trade blows over cigarette prices


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. ....

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Illegal cigarette kingpins made R12bn since lockdown ban on tobacco


Illegal cigarette kingpins made R12bn since lockdown ban on tobacco
By Thobeka Ngema
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Durban - Tax Justice SA (TJSA) and British American Tobacco South Africa (Batsa) are open to a commission of inquiry into the illegal cigarette trade in the country that has ballooned to billions of rands, the organisations have said.
On Tuesday,, TJSA founder Yusuf Abramjee said the illicit trade exploded since the 20-week ban in 2020 and that cost the country R38 million in lost excise taxes every day, and enriched kingpins in the black market to the tune of R12 billion.
Criminals selling tax-evading cigarettes now openly dominate the market across the country, costing the fiscus an estimated R8 billion a year in lost excise alone. ....

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