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Industry body cautions against illegal cigarette tracking system

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The Tobacco Institute of Southern Africa (Tisa) has warned tax authorities in SA against wasting billions of rand in pushing for the implementation of a new illegal cigarette tracking system.

. According to Tisa, the SA Revenue Service intends awarding the multibillion-rand tender to one company yet there is no guarantee that the system can curb R8bn losses incurred due to illegal cigarette trade.

The project was apparently conceptualised under Tom Moyane’s watch when he was SARS commissioner. A request for proposals was issued on April 26, with a deadline of June 20 for bidders to submit proposals. Tisa chairman François van der Merwe raised concerns that SARS was trying to implement a the system within 12 months while it had taken at least four years of consultations and trials in other countries.

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