SA fumes over illegal cigarette business

11 November 2015 - 02:39 By Aron F Hyman

South Africa loses R10-million a day to the illicit trade in cigarettes and about R24-billion in tax revenue has gone up in smoke since 2010. These figures were presented by Francois van der Merwe, CEO and chairman of the Tobacco Institute of Southern Africa during a joint press briefing with Deputy Minister of Police Maggie Sotyu and Hawks' Brigadier Mokgadi Bokaba at the Anti-Illicit Trade Conference in Cape Town.Sotyu said that police suspected highly organised syndicates and corrupt border officials could be behind the recent hijackings of cigarette trucks."There was an allegation that some of the trucks were even escorted by the police from the borders into South Africa," said Sotyu.Van der Merwe explained that some cigarettes manufactured in Zimbabwe were smuggled into the country in tankers or hidden compartments."We believe that in Zimbabwe cigarette manufacturers are producing specifically to smuggle to South Africa," he said.Van der Merwe said 23% of cigarettes sold in South Africa were illegal. This amounted to about 700000 packs daily.Sotyu called for stricter border control...

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