'If Sars is not doing its job the illicit cigarette trade takes advantage'

The Tobacco Institute of Southern Africa (Tisa) has released a report on the illegal cigarette trade that is flourishing across South Africa under the watchful eye of Sars.

Some prominent politicians are reportedly benefiting from payments made from the illegal cigarettes available in more than 100,000 shops across the country.

General Manager at JTI in South East and Central Africa, Andrew Neumann says Sars is in a way turning a blind eye in policing the tobacco manufactures in the country.

He says the law requires the manufactures to declare their total production and pay tax according to that.

Read: Smokers who pay R10 for a pack are smoking us all

Sars seems to be turning a blind eye to the illicit cigarette trade.

Andrew Neumann, General Manager at JTI in South East and Central Africa

We've seen an increase in illicit tobacco over a couple of years under the leadership of the prior commissioner of Sars. This is widespread and very public.

Andrew Neumann, General Manager at JTI in South East and Central Africa

Neumann says he is much more optimistic that things will change now that Tom Moyane has been suspended.

I think this is an opportunity to make some small changes in the tax structure in South Africa. One of which would be to implement the minimum selling price at the excise tax rate.

Andrew Neumann, General Manager at JTI in South East and Central Africa

SARS is currently losing about R7 billion due to the trade and there isn't much the police can do when they walk into a shop and find the prices relatively too low. The law simply doesn't make provision for that, says Neumann.

If you sell at a price lower than required, really that's not illegal. This ties the hands of the police, it is up to Sars to go and audit the manufacturers.

Andrew Neumann, General Manager at JTI in South East and Central Africa

To hear the rest of the interview with Andrew Neumann, listen below:


Recommended

by NEWSROOM AI
Read More
Public Protector's office accused of irregular expenditure

Public Protector's office accused of irregular expenditure

EWN reporter Bonga Dlulane says the Public Protector failed to comply with legislation when buying goods and services.

ANC factions are very much alive - analyst

ANC factions are very much alive - analyst

Political Editor at Mail and Guardian Matuma Letsoalo questions the face of unity shown by the ANC.

City of CT apparently undersold prime Foreshore property by millions

City of CT apparently undersold prime Foreshore property by millions

GroundUp reports on an apparent valuation blunder which saw the City sell Site B to Growthpoint for much less than market value.

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

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

Karima speaks to journalist Pauli Van Wyk to understand why billions are being lost to the illicit cigarette trade.

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.

There should not be any space where we allow public smoking - Motsoaledi

There should not be any space where we allow public smoking - Motsoaledi

The Health Minister is at 17th World Conference on Tobacco or Health in Cape Town discussing implementing tobacco restrictions.

Popular articles
'My hubby is 75 and we still do it' - stories about sex on the other side of 50

'My hubby is 75 and we still do it' - stories about sex on the other side of 50

Is biology putting the brakes on your sexuality? Callers share their experiences of sex and growing older.

How to get rich by investing in smoking hot US and Canadian dagga shares

How to get rich by investing in smoking hot US and Canadian dagga shares

Returns of 500% are not unheard of. Is this another crypto-like bubble? Not in the least, says Financial Advisor Warren Ingram.

[Watch] Dad breaks down when reunited with car sold to pay wife’s bills

[Watch] Dad breaks down when reunited with car sold to pay wife’s bills

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

DStv Premium on a downward spiral, warns tech guru

DStv Premium on a downward spiral, warns tech guru

DStv has lost about 140 000 Premium subscribers to Netflix over the past two years, tech expert Arthur Goldstuck.

ANC Tshwane gives mayor ultimatum on non-compliant buildings

ANC Tshwane gives mayor ultimatum on non-compliant buildings

ANC in Tshwane has given the Executive mayor Solly Msimanga 48 hours to produce occupation certificates for three buildings.

[LISTEN] 'Lesufi has been attacking Afrikaans schools since 2014'

[LISTEN] 'Lesufi has been attacking Afrikaans schools since 2014'

The Freedom Front Plus says the Gauteng Education MEC has flouted school language policies and is destroying Afrikaans.

'We can barely enforce tobacco legislation, how will we to deal with dagga?'

'We can barely enforce tobacco legislation, how will we to deal with dagga?'

International law enforcement expert and former Drug Unit Commander Lobo das Neves says ruling opens a different can of worms.

Standard Bank's Ian Sinton implicates two cabinet ministers in state capture

Standard Bank's Ian Sinton implicates two cabinet ministers in state capture

Standard Bank’s head of compliance Ian Sinton told the commission two ministers bullied the bank not to close Gupta's accounts.