Nearly 8 in 10 SA retailers selling illicit cigarettes as SARS faces R20bn challenge
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GUEST – Johnny Moloto, Area Head of Corporate & Regulatory Affairs for BAT South Africa
New research conducted by independent research house Ipsos shows that illicit cigarette availability in South Africa has reached the highest levels on record. More than three quarters of shops (76.7%) countrywide are now selling cigarettes below the minimum tax threshold applicable on a pack of 20.
This comes after Finance Minister Enoch Godongwana set a target for the South African Revenue Service (SARS) to collect a minimum R20 billion in additional tax revenue in this financial year to avoid the need for new tax measures in the 2026 Budget.
“With the clock ticking for SARS to collect at least an extra R20 billion, these results from Ipsos show the need for immediate steps to plug the leaks in tobacco tax collection,” said Johnny Moloto, Area Head of Corporate & Regulatory Affairs for BAT South Africa
New research conducted by independent research house Ipsos shows that illicit cigarette availability in South Africa has reached the highest levels on record. More than three quarters of shops (76.7%) countrywide are now selling cigarettes below the minimum tax threshold applicable on a pack of 20.
This comes after Finance Minister Enoch Godongwana set a target for the South African Revenue Service (SARS) to collect a minimum R20 billion in additional tax revenue in this financial year to avoid the need for new tax measures in the 2026 Budget.
“With the clock ticking for SARS to collect at least an extra R20 billion, these results from Ipsos show the need for immediate steps to plug the leaks in tobacco tax collection,” said Johnny Moloto, Area Head of Corporate & Regulatory Affairs for BAT South Africa
