Tax Justice South Africa (TJSA) is calling for South Africans to reject the proposed Tobacco Control Bill iol.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from iol.co.za Daily Mail and Mail on Sunday newspapers.
Despite the denials by the Zimbabwean government that raw tobacco is smuggled to South Africa where it is sold for a song, authorities in the neighbouring country confirmed this.
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Inspectors from the SA Revenue Service should be physically present where cigarettes are produced, says Yusuf Abramjee, founder of Tax Justice South Africa.
For every pack of cigarettes sold in SA, at least R20.01 should be paid in taxes, but many are sold for well below this price.
A black market for cigarettes is still thriving, despite the ban of the sale of tobacco products being lifted in August last year.
Officials from the SA Revenue Service (SARS) should be physically present in cigarette factories in South Africa to ensure that taxes are paid and illegal products don t enter the market.
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Cigarette war goes radioactive
Tax justice group says two of every three cigarettes sold in SA is illicit, robbing the fiscus of R8bn a year. Small tobacco manufacturers say the group is a front for Big Tobacco. 00:01
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It seems forcing smokers to get their fix illegally during the ban has normalised the act among retailers and consumers. Image: Shutterstock
A new report by Tax Justice SA (TJSA) finds that two of every three cigarettes sold in SA are illicit, making SA possibly the worldâs largest black market for cigarettes.
This is costing the fiscus R8 billion a year. A TJSA researcher visited 43 retail outlets in four different cities and in all but one of these outlets was able to buy cigarettes for less than R20 a pack.