'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
Somali shops looted in Vosloorus, several suspects arrested

Somali shops looted in Vosloorus, several suspects arrested

Gauteng police spokesperson confirmed that several people were arrested for robbing Somali owned shops.

SAHR to investigate further racism claims at SuperSport after Willemse case

SAHR to investigate further racism claims at SuperSport after Willemse case

SAHRC's Buang Jones says it will probe other allegations of racism at SuperSport in order to take appropriate action.

Reports that Eskom has put the army and police on standby are disturbing - Numsa

Reports that Eskom has put the army and police on standby are disturbing - Numsa

There are reports of a possible pushback from unions over potential retrenchments.

 '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
[WATCH] Refentse Morake continues breaking cultural barriers through his music

[WATCH] Refentse Morake continues breaking cultural barriers through his music

The singer who says he's 'on the border of being Afrikaans and being African' joined Azania Mosaka for this week's #702Unplugged.

What happens to our bodies if we cut out sugar

What happens to our bodies if we cut out sugar

Naked Scientist Chris Smith explains.

Why did Jussie Smollet fake his own attack? Eusebius and listeners weigh in

Why did Jussie Smollet fake his own attack? Eusebius and listeners weigh in

Eusebius McKaiser facilitates a debate on whether or not American actor Jussie Smollet faked his own attack.

[WATCH] SANDF members hilariously mess up a supposedly easy practice run

[WATCH] SANDF members hilariously mess up a supposedly easy practice run

Khabazela shares tweets and Facebook posts that have gone viral.

[LISTEN] Wife of Vele Investments' Madzonga flatly denies VBS involvement

[LISTEN] Wife of Vele Investments' Madzonga flatly denies VBS involvement

Vele Investments CEO Robert Madzonga's estranged wife Khosi shares her side of the story on the VBS saga.

Is EOH corrupt? Is that why Microsoft ran for the hills? Its CEO explains…

Is EOH corrupt? Is that why Microsoft ran for the hills? Its CEO explains…

The Money Show’s Bruce Whitfield interviews Stephen van Coller, CEO at EOH Holdings.

'R23 million for rent a month seems huge. I don't think we could've done better'

'R23 million for rent a month seems huge. I don't think we could've done better'

The Money Show’s Bruce Whitfield interviews Adrian Gore, founder and Group Chief Executive Officer at Discovery Limited.