According to South African media outlet IOL, the South African Revenue Service suffered tax losses of over 20 billion South African Rand (approximately 1.078 billion US dollars) last year due to illegal tobacco trading.
According to reports, the 20 billion Rand fund that was initially intended for financing solar power systems could be used to liberate 20 small towns from the control of state-owned power companies.
The head of the customs department, Beales Sillon, pointed out that tobacco has consistently held the top spot in South Africa's illicit economy, with approximately 15 million illegal cigarettes being lit every day, three-quarters of which are sold in informal retail stores.
The Transnational Alliance to Combat Illicit Trade (TRACIT) has highlighted in its report that South Africa, despite being the largest and most diverse economy in Africa, and the only African representative in the G20 and BRICS economic organizations, faces numerous challenges in illegal trade. These challenges span across sectors such as alcohol, tobacco, fisheries, mining, counterfeit electronics, pharmaceuticals, food, and clothing. The scale of these illegal trade losses is staggering, causing significant revenue and resource loss for an economy that could have otherwise benefited from increased infrastructure investment and improved living conditions for its citizens.
The South African Revenue Service estimates that illegal trade costs the South African economy up to 100 billion South African Rand (approximately 5.4 billion US dollars) annually. The Business Leadership South Africa (BLSA) estimates that the country loses approximately 250 million South African Rand in tax revenue every day.
Furthermore, according to estimates from the Organisation for Economic Co-operation and Development (OECD), South Africa is losing between $3.5 to $5 billion annually due to illicit financial flows, which is equivalent to more than 1% of its Gross Domestic Product (GDP).
These data reveal the serious issues that South Africa faces in combating illegal trade, which not only damages the country's finances but also hinders economic sustainability.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
