According to a new study by Ipsos, illegal cigarette trade in South Africa continues to thrive despite recent law enforcement efforts.
According to the latest research by Ipsos, after more than two years of unconstitutional tobacco sales ban implemented by the government, illegal tobacco products still flood stores across the country, which is part of the government's response to the COVID-19 pandemic.
A study has revealed that in the Western Cape province, almost three-fourths of stores (77.9%) sell cigarettes below the minimum taxable rate of 22.79 South African Rand (1.28 USD) per pack. In the Free State, nearly three-fourths of stores (72.3%) sell cigarettes below MCT prices, while in Gauteng province, 66.2% of stores do the same. The increase is significant when compared to a study conducted one year ago.
According to Ipsos, a pack of 20 cigarettes can be priced as low as 7 South African rand, which is lower than the minimum price of 8 South African rand discovered in a study conducted in October 2021.
The latest Ipsos research unquestionably proves that the unconstitutional ban on tobacco sales has created a greedy monster," said Johnny Moloto, the general manager of BAT's South African subsidiary.
Cigarette manufacturers involved in tax evasion are unwilling to relinquish their control over the tobacco market in South Africa. They have amassed billions in illegal profits at the expense of the country's vital revenue stream and have undermined honest work.
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