On 20 January 2021, the Newcastillian – Online News published an article highlighting a damning investigation by Tax Justice South Africa (TJSA), which estimated that two in every three cigarettes sold in SA is now illicit, post the various tobacco bans.
Read more: Report claims two in every three cigarettes sold in SA, is now illicit.
At the time, the SA Tobacco Transformation Alliance (SATTA) called for urgent action from leaders in the wake of the report. Additionally, SATTA affirmed, vendors appeared to have no fear of reprisals from law enforcement, and many seem not to know or care that their prices are below the minimum tax threshold of R20.01 per pack. “This disturbing report is graphic proof that illicit cigarette manufacturers have taken over the market. They were empowered by the lockdown sales ban and their networks are now firmly entrenched in the South African cigarette market.”
In a statement released on 12 April 2021, Motsumi emphasised, “What makes us particularly angry is the fact that the latest boom in illicit sales is directly linked to the tax increase of R1.39 a packet that the Government introduced earlier this year. And we told the Government that was exactly what was going to happen: a tax increase would only benefit the people who are already not paying taxes, as the higher price would force consumers to find cheaper options.”
Offering some relief in this plight, the Newcastle Crime Intelligence Unit and Newcastle Public Order Police (POP) Unit recently seized hefty R800 000 worth of illegal cigarettes. Newcastle police spokesperson Lizzy Arumugam explains that the seized cigarettes include Caravella, Yes, Savannah, Sahawo, MC, DC, CK, Remmington, Legends, Kings, Red, and Red Black, and Ossum.
With a 33-year-old suspect subsequently being arrested, Arumugam highlighted that further information was gathered on the supplier, hailing from Gauteng. “The illicit trade is roaming in South Africa. These cigarettes are dangerous to your health and economically cause the country billions of Rands. Zero tolerance should be adopted on the manufacturers, suppliers, and businesses,” she affirms.
While further police investigations into the matter continue, what are your thoughts?
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