ILLEGAL TRADE

South Africa currently ranks among the top 5 countries in the world with the highest incidence of trade in illegal cigarettes.

Almost 15 million illegal cigarettes are smoked in South Africa every day. A significant percentage of illegal trade is concentrated in North West, KwaZulu Natal and Limpopo. However, Mpumalanga and Gauteng are emerging as provinces at risk.

South Africa has a 4,862 km border with countries where tobacco leaf is produced at a fraction of the local price. This acts as an incentive for smuggling across the border, putting processors and manufacturers who support local tobacco leaf growers at a massive disadvantage.

Legally manufactured cigarettes cost R40 but can be bought for a quarter of the price on the illicit market. In total, the State is losing over R8 billion a year in potential tax revenue.

“Illegal cigarettes are unregulated and sold at prices that make them attractive to young people – and the people selling them aren’t concerned with how old their customers are. They’re not only damaging the health of our children, but they taking billions from taxpayers, and jeopardising the livelihoods of South African farmers.”

– Shadrack Sibisi, SATTA Alliance chairman