SOUTH Africa is drowning in illicit cigarette smuggling which has seen the neighbouring country losing at least R50 million (US$2.6 million) daily in potential .
MONEYWEB
LIVESTREAM
Nearly three-quarters of retail outlets in Free State, Gauteng and Western Cape are selling illicit cigarettes: Ipsos. 11:18
Open:
Image: Suzanne Plunkett, Bloomberg News
A study commissioned by British American Tobacco SA (BAT) â said to be free of interference from BAT â suggests the cigarette market has been given over to black marketeers, with four out of five outlets surveyed in the Free State offering smokes at below the minimum collectible tax (MCT) of R21.61 for a pack of 20.
Any pack of 20 cigarettes selling below the MCT of R21.61 is deemed to be illicit. Some packs were selling for as little as R10 and even R6 â meaning no tax could have been paid on these cigarettes.
Getty Images
The announcement of an 8% increase in excise duties - affecting tobacco products - saw the domestic market flooded with untaxed cigarettes.
A survey commissioned by British American Tobacco SA shows that nearly three-quarters of retail outlets in Gauteng, the Western Cape, and the Free State are openly selling illegal cigarettes.
These cigarettes are selling for as little as R8 for a pack of 20 sticks - compared to the legal minimum collectable tax of R26.61.
The domestic market was flooded with illegal cigarettes following the announcement of an 8% hike in excise duties which affects tobacco products, a survey shows.
Tobacco tax hike announcement spawned illicit trade sierraleonetimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sierraleonetimes.com Daily Mail and Mail on Sunday newspapers.
Tobacco tax hike announcement spawned illicit trade zimbabwestar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zimbabwestar.com Daily Mail and Mail on Sunday newspapers.