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2 out of every 3 cigarettes sold in SA are illicit, report estimates


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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. ....

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British American Tobacco SA to oppose state's bid for leave to appeal tobacco ban ruling


Carin Smith
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South Africa s largest cigarette manufacturer, British American Tobacco SA, and others intend to oppose government s application for leave to appeal a recent High Court judgment which found the ban on tobacco during the country s hard lockdown last year was unnecessary.
BATSA and other tobacco traders, including the Limpopo Tobacco Processors, SA Tobacco Transformation Alliance and Suider Afrika Agri Inisiatief, had turned to the High Court in August 2019 - before the ban was lifted - to challenge its legitimacy. Judgment in the case was reserved and delivered in December in BATSA s favour, with the court finding the ban was unconstitutional and unnecessary.  ....

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