Illicit Tobacco in South Africa – Not Enough Political Will to Tackle it

Thanks to the COVID-19 tobacco sales ban in 2020, South Africa has one of the highest illicit tobacco levels in the world today, with an Ipsos ¹ study finding that almost 60% of stores across the country are selling products for less than the minimum collectable tax (MCT).

What’s more, according to British American Tobacco South Africa (BAT SA), 78% of illicit products are locally produced, with the remainder smuggled in from neighbouring countries. This means that most of the illicit product consumed in the country is being manufactured and distributed right under the noses of South African authorities.

Unfortunately, said André Joubert, General Manager of BAT SA (in an article for sowetanlive.co.za), there is not enough political will in South Africa to effectively tackle this issue.

The Ipsos study shows that, since 2021 at least, a core group of manufacturers with factories in South Africa, and with licences issued by the South African Revenue Service (SARS), have consistently supplied large quantities of cigarettes at prices well below MCT over the entire three-year period.