'Tobacco is an integral part of what is happening at Sars at the moment'

Independent research on the illicit tobacco industry has found that the South African Revenue Services (Sars) is losing R 7 billion this year because of this crime.

The study by Global research company Ipsos reveals the “non-organised” trade sells 79.7% of all cigarettes in South Africa and that illicit traders could have made over R15bn in the last three years.

The report also shows how the market prospered between 2014 and 2017 after Sars ordered that investigations and the inspection of cigarette factories be stopped, during Tom Moyane's tenure.

Karima Brown spoke to Journalist at Daily Maverick’s investigative team Scorpio, Pauli Van Wyk, to understand the business and the impact it has had on Sars.

When we talk about illicit tobacco, we must also remember that things like smuggling and under declaring your manufacturing is all part of illicit tobacco. It is not only your small players, it is also the big players like Imperial, British American Tobacco that cut corners...

Pauli Van Wyk, Journalist at Daily Maverick’s Investigative Team Scorpio

I have written a story about Cecil Morden who was a treasury official and testified before the Nugent Commission into Sars. He showed over a seven year trend how under Mr Moyane's tenure, the decline almost in excise duties in terms of tobacco, slowed down in the first three years of his tenure which was 2014/15 and then 2015/16 and from 2016/17 it sharply declined...

Pauli Van Wyk, Journalist at Daily Maverick’s Investigative Team Scorpio

2017/21018 it again sharply declined. Over those two years, it regressed our capability to collect tax and it actually regressed with about 15%.

Pauli Van Wyk, Journalist at Daily Maverick’s Investigative Team Scorpio

Click on the link below to listen to the full conversation...

Cover photograph: Pixabay


Recommended

by NEWSROOM AI
Read More
[LISTEN] EC House of Traditional Leaders 'outraged' at deaths of initiates

[LISTEN] EC House of Traditional Leaders 'outraged' at deaths of initiates

Three deaths were reported last week.

[LISTEN] #Sona2019: 'A lot of dreams and not many concrete steps'

[LISTEN] #Sona2019: 'A lot of dreams and not many concrete steps'

DA Chief Whip John Steenhuisen and other opposition parties react to President Cyril Ramaphosa's State of the Nation Address.

[LISTEN] #Sona219: Cosatu hopes for clear plan and targets to create jobs

[LISTEN] #Sona219: Cosatu hopes for clear plan and targets to create jobs

President Cyril Ramaphosa is set to present his State of the Nation Address (Sona) on Thursday.

'It's up to Ramaphosa to decide on Moyane's bid to have Sars Inquiry postponed'

'It's up to Ramaphosa to decide on Moyane's bid to have Sars Inquiry postponed'

Tom Moyane's legal team will now look to the president to halt the Sars inquiry after his request was rejected.

Sars plans to stamp out illicit cigarette trade

Sars plans to stamp out illicit cigarette trade

Sars group executive for customs compliance risk William Mpye talks through plans to root out the illicit tobacco trade.

Illicit Cigarette Trade

Illicit Cigarette Trade

South Africa has seen a decrease in the illicit cigarette trade from 31% to 23% over the last year. Despite this decrease, South Africa is still one of the top five countries with the highest incidence of trade in illicit cigarettes.

Popular articles
Amy'Leigh kidnapping suspect reveals the mastermind

Amy'Leigh kidnapping suspect reveals the mastermind

EWN reporter Kgomotso Modise unpacks the court case at the Vanderbijlpark Magistrates Court.

4 things you should never say if you want to get rich

4 things you should never say if you want to get rich

Don’t ever say or, worse, believe any of these wealth-destroying platitudes, implores personal finance expert Warren Ingram.

Fraudsters are getting professional, scamming consumers with ingenious methods

Fraudsters are getting professional, scamming consumers with ingenious methods

“It makes all of us a target to fraudsters,” warns Manie van Schalkwyk of the South African Fraud Prevention Service.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.

[WATCH] 'If this world were mine', grocery store impromptu rendition goes viral

[WATCH] 'If this world were mine', grocery store impromptu rendition goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

How to buy a new car even if you don’t really have enough money for it

How to buy a new car even if you don’t really have enough money for it

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.

Forensic investigator pokes holes in Watson death probe

Forensic investigator pokes holes in Watson death probe

The recent findings of a private pathologist ruled out suicide as the cause of death of the former Bosasa boss.