Tobacco Tax

THE illegal tobacco trade costs the country an estimated R4-billion in unpaid taxes each year.

According to Tobacco Institute of Southern Africa chief executive Francois van der Merwe, the trade in illegal cigarettes costs legitimate retailers more than R7-billion in turnover profit and more than R750-million in margins annually.

"We commend the work being done by SAPS and Sars in addressing this illegal trade in cigarettes," he said.

"During 2011, 1,2billion illegal cigarettes were seized. In addition, approximately 800 key players in the illicit industry were arrested on charges relating to the smuggling and trade of illegal cigarettes."

Last month, law enforcement agencies confiscated millions of illicit cigarettes in KwaZulu-Natal and Gauteng.

• In Durban, authorities seized 18million illegal cigarettes from containers at the harbour on 15 February.
• The previous day, police confiscated close to 150000 illegal cigarettes from two sellers in Bakerton near Springs in Ekurhuleni. The illegal Dullahs and Remington Gold cigarettes were said to carry a street value of about R115000.
• On February 16, police and Sars officials seized 200000 illegal cigarettes.
• In another incident in Namibia on March 6, customs officials in Walvis Bay seized a container with more than a million smuggled cigarettes.

The container was destined for Botswana. Officials found the illegal Governor and Director cigarettes concealed in boxes of washing powder.

"The illegal trade in cigarettes has become a regional issue," Van der Merwe said.

How to spot illegal cigarettes:

• Paying less than R15,00 for a pack of 20s (suspect price);
• There is no excise stamp on the pack;
• The tar and nicotine readings are higher than 12mg tar and 1,2mg nicotine respectively; and
• There are no health warnings on the pack.