'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
SA consumers are taking up less debt but still struggling to pay up

SA consumers are taking up less debt but still struggling to pay up

The National Consumer Regulator's Jimmy Golele says about 9.6 million consumers are not coping with their debt.

Gigaba's allegations of impropriety continue

Gigaba's allegations of impropriety continue

"Malusi has been put at the centre of the China South Rail locomotives deal," says Thanduxolo Jika - Investigations Editor at M&G.

Eskom CEO refutes claims that Abram Masango resigned due to harassment

Eskom CEO refutes claims that Abram Masango resigned due to harassment

The senior executive resigned after being served with a notice of suspension on Friday.

 '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
Gigaba implicated in Transnet impropriety

Gigaba implicated in Transnet impropriety

Gigaba has been fingered in a forensic investigation related to the procurement process for locomotives from China South Rail.

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

Dr Eve discusses cervical cancer and how it can be prevented.

[LISTEN] Is Gqom really music? Callers share their views

[LISTEN] Is Gqom really music? Callers share their views

Callers on the open line discuss class appropriation by musicians and music genres.

3 risks to your retirement savings (and how to mitigate each of them)

3 risks to your retirement savings (and how to mitigate each of them)

Only 5% of South African retirement fund members will retire comfortably. Bruce Whitfield interviews advisor Warren Ingram.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

Gauteng Education to do away with old apartheid era feeder schools policy

Gauteng Education to do away with old apartheid era feeder schools policy

The new feeder policies will be implemented by 2020.

Thandeka Gqubule prepared to fight EFF to the end

Thandeka Gqubule prepared to fight EFF to the end

SABC Journalist and part of the SABC 8 Thandeka Gqubule says she has not had any communication from the EFF.

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

South Africa has a brand-new bank! The Money Show’s Bruce Whitfield interviews Adrian Gore, Discovery Group CEO.