The factsheet gives statistics and figures on the extent of illicit tobacco trade in Southern Africa. The trade in illegal cigarettes is estimated to have cost the SA government over R5-billion in excise and VAT for 2012. Combating illicit trade has become a major challenge, not just in South Africa, but globally. The black market is driven by high tobacco taxes, particularly when taxes and therefore prices in neighbouring countries are much lower. Weak criminal penalties, poor border controls, low arrest rates and corruption in some parts of the world add to the problem. Illicit trade in cigarettes may be classified into three categories, Smuggling, Counterfeit and Local Tax Evasion. Illicit trade is not just the work of small operators, but organised crime is increasingly dominant due to its high rewards.
Click on an image to view it in the image viewer
There are no comments for this item.