BATSA has commissioned independent market research company Ipsos to investigate the sale of cigarettes below the minimum collectible tax rate.Not all tobacco organisations, however, agree with the report and BATSA's call for a commission of inquiry.
Of the 1 849 packs bought at R20 and below, 904 were packs distributed by the Gold Leaf Tobacco Corporation , 352 by Carnilinx and 160 by Mango Investments. Remington Gold, manufactured in Zimbabwe, was sold as the cheapest available brand below MCT at 533 of the outlets visited. In his view, three initiatives will make a big difference and are not difficult to achieve. Firstly, all tobacco companies should be complying with SA Revenue Service production counter rules; secondly, government should finally ratify the World Health Organisation's Illicit Trade protocol to fight illicit trade; and thirdly, South Africa must introduce a comprehensive track-and-trace system.
"The industry is bleeding because of illicit trading. Illicit trading poses a serious threat to our economy. The tax collection is reduced and the people benefiting are criminal cartels. We, therefore request the government to set up a commission that would deal with illicit tobacco trading, implement the minimum price level and ratify the Illicit Tobacco Protocol that they signed in 2013," said SATTA spokesperson Zacharia Motsumi.