Illegal tobacco sales costing SA billions

GOING UP IN SMOKE: Police confiscate illegal cigarettes with a street value of R100000 in Polokwane, Limpopo. The Tobacco Institute of Southern Africa has called on South Africans to help fight the scourge of illicit trade which is estimated to have cost the country more than R20-billion in tax revenue since 2010 Photo: ELIJAR MUSHIANA
GOING UP IN SMOKE: Police confiscate illegal cigarettes with a street value of R100000 in Polokwane, Limpopo. The Tobacco Institute of Southern Africa has called on South Africans to help fight the scourge of illicit trade which is estimated to have cost the country more than R20-billion in tax revenue since 2010 Photo: ELIJAR MUSHIANA

THE Tobacco Institute of Southern Africa has called on South Africans to join the government and other stakeholders in the fight against illicit trade in the country.

The institute's CEO Francois van der Merwe was speaking on the sidelines of the Illicit Trade Conference being held in Bantry Bay, Cape Town.

More than 100 delegates from 23 African countries are meeting to collaborate on efforts to address the scourge of the illicit tobacco trade in sub-Saharan Africa.

The conference, which started on Monday, ends today.

The objective of the conference is also to build a foundation for close collaboration between affected countries in the region as well as their law enforcement, customs, treasury and revenue departments.

Van der Merwe said they wanted South Africa and the region to be the preferred destination for investors.

But the image of the country and region had been tarnished by the illicit trade, he said.

"Illicit syndicates are selling their products in the country and the region.

"Illicit trade is affecting investment in South Africa and the region because no investors want to invest in these countries."

It was important that many ordinary people be part of the solution because they were buying cigarettes on the streets, he said.

Van der Merwe also said they were committed to working with the government and the region to combat the problem.

More than R20-billion in tax revenue had been lost since 2010 and the government has lost R2.6-billion in tax to illicit cigarettes this year.

Europol senior specialist Howard Pugh said he was invited to the conference to offer "a UK perspective on the matter".

Pugh said they also shared ideas and he had learnt from other delegates about the crime-combating strategies.

There were wrong perceptions about the selling or buying of cigarettes in this country and in Europe, he said.

"Many ordinary people say there is nothing wrong with [the] selling or buying of cigarettes on the streets.

"Illicit trade and the problem fuels organised crime," he said.

Hawks spokesman Captain Paul Ramaloko said 375 people had been arrested in connection with the illicit trade.

Ramaloko also said the police had held 2028 operations to discourage illicit trade in the country.

A number of vehicles used in the transportation of illicit trade products were also confiscated.

About 60% of illicit cigarettes were manufactured in the country, while the rest were smuggled from other African countries.

"We have made inroads in these syndicates. We feel we have dented the scourge," he said.

 

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