If it was up to me I’d quadruple the tax on cigarettes … Imagine if we could get an extra R7 billion into the fiscus... maybe we can reduce some of the fuel taxes?— Bruce Whitfield, The Money Show
These cigarettes are all made in South Africa… We do not have a smuggling problem… 75% of all illicit products are made by Gold Leaf Tobacco Company… It makes the solution easy…— Francois van der Merwe, Tobacco Institute of South Africa
Illegal cigarettes – costing as little as R5 a pack – are sold in more than 100 000 shops across the country.
This is according to a report an Ipsos report, released on Thursday.
According to Ipsos, the sale of illegal cigarettes robs South Africans of R7 billion in taxes each year.
It also claims that South African cigarette companies are earning billions by failing to declare everything they produce in order to sell - tax free - to hawkers, spaza shops and corner cafés.
Listen to the interview in the audio below (and/or scroll down for more quotes from it).
It’s a crime of tax not being paid… The minimum tax owed per pack of cigarette is R17.85… This year there will be 8 billion cigarettes sold for under R17.85… translating to a loss to Government of over R7 billion…— Francois van der Merwe, Tobacco Institute of South Africa
Plain packaging… it will become a counterfeiters’ paradise…— Francois van der Merwe, Tobacco Institute of South Africa
They declare a small part of their manufacturing volumes… but the bulk of the product goes out the backdoor…— Francois van der Merwe, Tobacco Institute of South Africa
The average price of illicit products are around R10 or R11, and you can even buy it for as low as R5 or R6…— Francois van der Merwe, Tobacco Institute of South Africa
We are going to share this with Sars, the Hawks and Parliament… We do not have enforcement powers… All these investigations were stopped under the previous Commissioner [Tom Moyane] in 2014…— Francois van der Merwe, Tobacco Institute of South Africa
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator founder Pavlo Phitidis.
Got R50? No? Got R5? Personal finance expert Warren Ingram on how to buy shares with tiny amounts of money.
A simple savings plan for people who don’t like to budget. Bruce Whitfield interviews personal finance guru Warren Ingram.
The South African billionaire has responded to reports placing him at the centre of an alleged tax evasion scheme.
President Ramaphosa is invoking his inner Mandela for political ends, says Political Economy Analyst Daniel Silke.
He's been implicated in an elaborate tax-dodging scheme, says amaBhungane’s Craig McKune.
The annual MTN Walk the Talk with 702 takes place on 22 July this year, under the theme 'Walking for South Africa'.
‘It took approximately 4 – 5 months because I had to make some stops on the way for repairs.' - Julia Albu, the African Conquest
Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)
Journalists Sikhonathi Mantshantsha and Kyle Cowan discuss just how the Guptas and their associates helped capture Eskom.
Bruce Whitfield interviews Francois Janse van Rensburg, author of “Making Money through Buy-To-Let in South Africa".
Clinical sexologist Dr Eve shares insights into sexual fetishes and how partners negotiate them in their bedroom and relationship.
Join Joburgers from all walks of life come together peacefully, united in their diversity for a fun family day out.
WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...
Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?