Approximately R250 million is looted from South Africa daily by the illicit economy, as a result Tax Justice SA has urged an investigation of all cigarette firms. This follows a market researcher Ipsos which exposed rampant illicit trade on Monday.
TJSA Says every tobacco company in SA should submit to a comprehensive official investigation in the wake of a damning new report. The founder of TJSA, founder Yusuf Abramjee told Gauteng News that the Ipso report has indicated that SA is being swamped by illicit cigarettes.
“A major study by market researchers Ipsos, released on Monday, reveals that, in some provinces, three out of every four retail outlets are selling a pack of 20 cigarettes below the Minimum Collectible Tax Rate (MCT) of R20.01, set by law,”
Abramjee said that the selling of illicit cigarettes undermines the Government and the rule of law.
“This is nothing less than organised crime, which is robbing decent South Africans of billions of rands desperately needed to save lives and rebuild our shattered economy. Instead of paying lip service to the rule of law, South Africa’s tobacco companies must face a full official audit,”
“This must be done in order to establish how illicit cigarettes bearing their name are able to flood the market. If any manufacturer fails to pass that test, their factories should be closed down and all their brands should be seized and removed from the market immediately.” he said.
Almost half (41%) of outlets nationwide sell cigarettes below MCT. That figure jumps to three-quarters in the Free State (76%) and Western Cape (73%) and 62% in Gauteng. The lowest purchase price for a pack of 20 was R9.00, and for a 10-pack carton the price dropped to just R6.30 per pack.
This according to the Ipsos mystery shopper survey of retail outlets, ranging from spaza shops to supermarket chains, across the country.
