There would probably be a few non-smokers – and public health activists – who would shed few tears about the news that South Africa’s cigarette market is dominated by illegal products.
After all, this is the only substance which, used as directed, will kill you.
However, the fact that as much as 75% of all cigarettes now sold come from illicit sources is a national crisis.
South African Revenue Service (Sars) commissioner Edward Kieswetter told parliament’s portfolio committee on health that, according to research from the University of Cape Town, Ipsos and Tax Justice SA, the illicit tobacco trade has spiked from 19% of the market in 2014 to 75% this year.
He said between 2020 and 2022, Sars lost about R84 billion in excise tax revenue.
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Criminal syndicates exploited porous borders, weak enforcement and the Covid lockdown disruptions to entrench dominance.
“We are confronting industrial-scale criminality involving sophisticated financial flows, front companies and complicit enablers across sectors – including banking and logistics,” Kieswetter said.
This tax evasion means there is less money to spend to lift people out of poverty and improve their lives. It’s a threat which affects all of us.
Perhaps it is time to start dealing with this for what it is: economic terrorism.
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