Illicit cigarettes accounted for about 5% of the South African market in 2009, but then former Commissioner of SARS and turtle look-alike, Tom Moyane, got his hands on the institution. A new study by the University of Cape Town has now revealed that the illicit cigarette market peaked at 60% in 2021, with a slight decrease to 58% in 2022. Had SARS collected its fair due in 2022, it would have added another 1% in total government revenue to the actual 0.6% received.
The excise on the pack is R21.77, which means anything selling for less than about R32 is probably illegal, say the authors of the report, Nicole Vellios and Corné van Walbeek. Nearly 30% of South African adults are smokers, and there is little doubt that the cheapness of cigarettes, flooded with black market products, is a key reason for the high smoking prevalence rate in SA.
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