CIGARETTE DISRUPTION: British American Tobacco fears profits will go up in smoke as illegal trade devours the market

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The cigarette manufacturer says illicit tobacco is driving out legal operators and depriving South Africa of billions in excise duty.

are verboten, because they are deemed to encourage children and young people from taking up vaping. From 1 July 2023, flavoured e-cigarettes and refill e-liquids will also be banned.reported more than 1,000 people had been sickened by lung illnesses

Batsa, which produces Peter Stuyvesant, Dunhill, Pall Mall, Rothmans, Benson & Hedges and Kent, as well as the Vuse vape devices, calculates that there are at least 24.4 billion illicit cigarettes on the market, costing SA R24-billion in excise revenue only, excluding VAT and other taxes. Since 2020’s Covid shutdown, BAT has been forced to decommission cigarette manufacturing machines and lay off staff. The latest round of retrenchments, announced in January 2023, affects about 190 of the group’s 1,100 local jobs. In 2018, BAT employed 2,400 staff.

Philip Morris and other international suppliers import 3.4 billion sticks legally each year, paying taxes on the products. During last week’s Budget speech, Finance Minister Enoch Godongwana said over the past three years, SARS has taken several steps to enhance its effectiveness in combating illicit trade, particularly in tobacco.to the value of R598.8-million. An additional R18-billion worth of schedules and assessments have been raised, targeting syndicated tobacco-related crimes.

 

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My thoughts in this thread:

Greedy tax rates are to blame

The ANC doesn’t care. Neither does sarstax or EdKieswetter

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