Latest news with #R20.00
IOL News
08-07-2025
- Business
- IOL News
Local manufacturers fuel illicit cigarette trade in South Africa, warns BAT
As much as R28 billion in annual tax revenue was being lost to illicit trade, exceeding the South African Revenue Service's (Sars) entire additional collection target of R20bn. Image: Supplied Tawanda Karombo British American Tobacco South Africa (BATSA) has pointed the finger at local manufacturers for exacerbating the illicit trade in cigarettes. Their claims come on the back of a study released by the company, shedding light on the alarming prevalence of illegal cigarette sales in the country. This issue, which was once largely perceived as a cross-border problem, has now morphed into a serious domestic challenge that threatens the economy and public health. Speaking after the release of a BATSA-commissioned study into the pricing of tobacco cigarettes in South Africa on Tuesday, Johny Moloto, the company's head of corporate and regulatory affairs said illicit trade in cigarettes was now a domestic concern for the country. 'This is no longer just a cross-border issue. This is a homegrown crisis, fueled by local manufacturers who continue to operate with impunity while the state loses billions in revenue,' said Moloto. Illicit trade in tobacco cigarettes is worsening in South Africa, with over 70% of retail outlets selling the products below the mandated minimum tax price. Commissioned by British American Tobacco (BAT) and independently conducted by Ipsos, the 2025 report outlines alarming national trends in the illegal tobacco trade, identifying South African manufacturers as the primary culprits behind the growing black market. Conducted by Ipsos, the Cigarette Retail & Wholesale Price Research report reveals that 76.7%, up from 27.4% in 2022, of South African retailers were now 'selling cigarettes below the minimum' tax threshold. As much as R28 billion in annual tax revenue was being lost to illicit trade, exceeding the South African Revenue Service's (Sars) entire additional collection target of R20bn. 'Despite increased raids and product seizures over the past year, illicit cigarette availability has continued growing, indicating current strategies are ineffective. locally manufactured brands continue to dominate the market for products selling below Minimum Collectable Tax price,' noted the report. According to the Customs and Excise Act, the Minimum Collectable Tax price for a box cigarettes in South Africa should sell for above R26.22 a pack after accounting for levies. However, results from the survey show Gold Leaf Tobacco Company as having the highest prevalence of products purchased, accounting for 43% of total outlet sample universe. Within the portfolio of the Gold Leaf Tobacco Company, 78% of products purchased retailed for R20.00 a pack and below whilst 89% of products purchased. BATSA had the second-highest prevalence of products purchased accounting for 13% of the total outlet sample. 'Within the BATSA portfolio of products purchased, 1.0% of portfolio products purchased retailed for R20.00 and below whilst 1.5% of the products purchased retailed for under the Minimum Collectable Tax of R26.22 and below,' notes the Ipsos report. It added that Afroberg had the third highest prevalence of products purchased, accounting for 8% of the total outlet sample. Within the Afroberg portfolio of the product purchased, 92% of portfolio products purchased retailed for R20.00 and below, whilst 96% of products purchased retailed for under the Minimum Collectable Tax of R26.22 and below. The study disclosed that 'the most common retail price was R10, found in nearly 1 in 5' transactions. It further noted that of the 23 manufacturers identified in the illicit chain, 14 were based in South Africa, accounting for 91% of the illicit stock.
IOL News
06-05-2025
- Politics
- IOL News
Let the readers have their say
Illegal foreigners need to go back to their countries. I am in support of the protest. Good job. | Sheila Verulam q q q I pledge my support to the protest 100%. In the first half of 2025, I have been mugged four times, twice at gunpoint and have been assaulted three times by the Shona-speaking individuals. The last attack was on April 29, at around 9.15am on the N12 westbound freeway near the Giloolies interchange. | Daily News reader q q q I see Independent Media has come up with a new, slimmer look Daily News, which is called the Berliner Format and is designed to make for easier reading, especially when 'on the go' or outside. This is progressive, and I am glad to know that you are considerate of the reader's comfort. However, I have two more suggestions: 1. Please refrain from having loose pages in the newspaper, as the pages invariably flop about and easily fall out of the main body, making for an irksome reading experience. 2. Secondly, now that you've reduced the width of the paper, consider the same for the length so there is a sense of proportionality in size to the paper. The slim, lean appearance is disproportionate to the paper. Thanks, loyal subscriber and reader for many years. | Pravin Thakur q q q The Democratic Alliance (DA) in eThekwini is alarmed by the findings presented at the Finance Committee meeting of March 2025, which confirm that the City is failing to invest in basic infrastructure while its financial position worsens. | Councillor Alicia Kissoon DA eThekwini councillor. q q q Ethekwini Municipality water unit blames the increased water demands and its ailing infrastructure for the water woes in the south of Durban. Where were the engineers, building inspectors and related disciplines with the concomitant oversight functions? Why did this weak leadership at eThekwini allow new holiday flats and shopping centres like Galleria and Arbour Crossing to be built without proper due diligence? Apartments built three years ago in Amanzimtoti are experiencing blocked sewers and weak water supplies for weeks because of the dereliction of duty by the ANC-run municipality. | Sanj q q qI walked into a Shoprite store and discovered that Albany bread now costs R20.00. Something is wrong with the pricing. | Daily News reader q q q Why call for the resignation of the Minister of Finance (Enoch Godongwana). Every parliamentarian who voted for the minister's budget are accomplices to the crime. Either they resign voluntarily or be booted out. | Kamal Panday q q q Please, enough with the page 2 articles about Joshlin Smith. Your journalists are just rehashing the same article daily. It's very frustrating. Please post proper news about this poor child. | Daily News reader q q q Why does this completely failed ANC want to stay in power? My humble advice is for them to close shop, apologise to the citizens of this once most beautiful country and say loudly, 'We have failed you'. | Bhagat Singh q q q I just wanted to comment on the new law on having to restrict firearms for security personnel and companies. Why don't the government or Psira upskill the companies or the guards? Why don't they bring in additional programmes or training to the ones in possession of these? | Daily News reader q q q The proposed private security amendments are catastrophic. Minister Mchunu has drafted this without thinking. Imagine if these amendments were passed, that would mean more South Africans would be left jobless, adding to the already high number of unemployed. | Daily News reader q q q I don't know why (Police Minister) Senzo Mchunu is still in office when he clearly is failing to do his job. Instead of fighting crime, he wants to cripple the private security sector with his dizzy amendments. Who does he think he is? Why isn't he going after the real criminals? And when is Cwecwe going to receive justice? | Daily News reader q q q Corruption still remains a societal and moral evil, causing suffering to our despised economic classes. It is perpetrated by self-oriented human beings. We have unending investigations into government, business and legal corruption. | Mervyn Appadu q q q The ANC is dead in KZN and nationally. | Daily News reader q q q The DA, please investigate the Durban Metro together with the ratepayers associations, as corruption between the course management and metro is continuing, as huge funds are being allocated to both golf courses by the course management, but the playing conditions on these courses are below acceptable levels. We need to take back our golf courses, and looters and corrupters must be jailed. | Daily News reader
