Buy legal, stay legal

Tobacco industry issues festive season call for united action against illicit tobacco products. Calls for consumers not to buy illicit products, and for law enforcement to step up clampdown in illicit dealers.

South Africa’s tobacco industry body, the South Africa Tobacco Transformation Alliance, calls for increased action against illicit tobacco dealers during the festive season, a time of increased consumption of tobacco products.

The call to action is directed at consumers and law enforcement authorities, under the slogan “Buy legal, stay legal”.

The campaign compares buying illicit cigarettes with other festive “offences” like drunk driving and theft – and encourages people not to do any of them, including buying illicit cigarettes. At a time when the spread of a range of illicit goods is under increased scrutiny, SATTA has produced a short video for its social media platforms to help the public identify illicit cigarettes in particular.

Purchase price

One of the key indicators of illicit products, as explained in the video, is the purchase price. As independent research has shown, any packs of 20 cigarettes on sale for less than R25.05 are highly likely to be illicit, as that figure barely covers the payable tax on a pack of 20 and excludes processing manufacturing or distribution costs, or a retail mark-up.

Consumers should also check for an SA diamond stamp on packs they intend buying, confirm there is a quit-line number and check for the proper health warning.

Given the scourge of under-age smoking and the tobacco industry’s commitment to fighting it, the video also urges cigarette consumers to keep their cigarettes well away from young people, with the message: “under-age means under-age”.

The impact of illicit products on the tobacco industry and the national fiscus has been devastating since the COVID-19 ban on sales was put in place for almost six months during 2020. Since then, the illicit sector has grown from 30% of tobacco product sales to almost 70%. In the process, thousands of workers across the industry have lost their jobs.

Today, for example, there are only 10 emerging tobacco farmers, down 92% from 2019 when there were 125. South Africa also has fewer than 155 commercial tobacco farmers – 21% fewer than the 197 it had in 2019.

Alongside this, illicit cigarette sales shaved more than R20-billion off the national fiscus in 2023 alone, and R72.2-billion from 2020 to 2022. Because of this, SATTA also calls on law enforcement authorities and local authorities to increase pressure on people and places selling illicit products, including tobacco. Their inspections of spaza shops and table-top outlets – which account for more than 80% of cigarettes sales overall – should include scrutiny of tobacco products, and illicit dealers should be arrested.