SHOCKER! Illegal cigarette trade EXPLODED with Moyane at SARS, SA losing billions - study

JOHANNESBURG — For years, TISA says it looked on while illicit cigarettes, which fail to comply with local tax laws, have flooded the market. In addition, TISA says that this coincided with a breakdown in its relationship with SARS, starting in 2014 - the year in which Tom Moyane was appointed as Commissioner of the tax collector. Such was the frustration that TISA experienced that it turned to independent researcher Ipsos to carry out a study on the illicit cigarette trade in the country. And the results of that study are absolutely shocking. About one in four cigarettes in the country, almost 25%, are being illegally sold at well below the tax threshold. This is significantly higher than the global average of 10%. Further to this, SARS is expected to lose R7bn in revenue collection this year owing to its years of failing to crack down on the industry. Because most of the illicit cigarettes in South Africa are made outside of the country, it's the local tobacco producers who also suffer the most with their sales expected to drop 15% this year alone, putting thousands of local jobs at risk. This issue, in many ways, became integral to state capture, and TISA Chairman Francois van der Merwe puts the blame squarely at the door of Moyane. In this podcast, you'll hear van der Merwe explaining why the study was needed. You'll also hear from Zibusiso Ngulube, Head of Market Measurement at Ipsos, who unpacks the results of the study. - Gareth van Zyl