Illicit tobacco sales will cost SA R7bn this year, says Tisa
Tobacco institute report claims suspended SARS commissioner Tom Moyane turned a blind eye to illicit cigarette industry
The South African Revenue Service (SARS), under the leadership of suspended commissioner Tom Moyane, cost SA R7bn in lost revenue, says a report by the Tobacco Institute of Southern Africa (Tisa). Tisa represents the legal tobacco products industry in the region. It alleges in a report released at the JSE on Thursday that SARS under Moyane had turned a blind eye to the illicit industry and stopped inspections at tobacco factories. SA is one of the world’s biggest markets for illicit cigarette sales. Tisa chairman Francois van der Merwe said that tobacco money had played a role in state capture “so no wonder our relationship with SARS was terminated” in 2014. The fact that cigarettes were available for as little as R5 a pack of 20 meant taxes were not being paid, he said. The tax on a pack of 20 is about R17.85. The report states that the illicit tobacco trade will cost SA R7bn this year. At the launch of the report at the JSE on Thursday, Tisa chairman Van der Merwe said: "At least ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.