The tobacco industry has appealed to consumers not to buy illicit cigarettes this festive season as that contributes to the downfall of small-scale tobacco farmers in the country of which there are only 10 left.
The spokesperson for the South African Tobacco Transformation Alliance, Francois van der Merwe, said the appeal comes as the illicit trade continues to hurt the industry and the economy of the country and jobs are being lost.
“The illicit sector has grown from 30% of tobacco product sales to almost 70%. In the process, thousands of workers across the industry have lost their jobs. There are only 10 emerging tobacco farmers, down 92% from 2019 when there were 125.
“South Africa also has fewer than 155 commercial tobacco farmers, 21% fewer than the 197 it had in 2019. Illicit cigarette sales shaved more than R20 billion off the national fiscus in 2023 alone, and R72.2 billion from 2020 to 2022,” van der Merwe said.
Calls for govt to act against illicit sales
Van der Merwe called on law enforcement authorities and local authorities to increase pressure on people and places selling illicit products, including tobacco.
“Their inspections of spaza shops and table-top outlets which account for more than 80% of cigarette sales overall should include scrutiny of tobacco products, and illicit dealers should be arrested.
“The call to action is directed at consumers and law enforcement authorities, under the slogan “Buy legal, stay legal”. The campaign compares buying illicit cigarettes with other festive “offences” like drunk driving and theft and encourages people not to do any of them, including buying illicit cigarettes,”van der Merwe said.
According to van der Merwe independent research has shown that any pack of 20 cigarettes on sale for less than R25.05 are highly likely to be illicit, as that figure barely covers the payable tax on a pack of 20 and excludes processing manufacturing or distribution costs, or a retail mark-up.
Related stories
- Tobacco bill: New ciggy law douses Mzansi’s flame
- This is how SA’s tobacco industry has gone up in smoke
“Consumers should also check for an SA diamond stamp on packs they intend buying, confirm there is a quit-line number and check for the proper health warning. Given the scourge of underage smoking and the tobacco industry’s commitment to fighting it.
“The impact of illicit products on the tobacco industry and the national fiscus has been devastating since the Covid-19 ban on sales was put in place for almost six months during 2020.
Van der Merwe added that the industry intends to go all out to raise awareness and those who do not abide by the law would be called out.
“We really appeal for consumers not to buy illicit products, and for law enforcement to step up clampdown in illicit dealers.”
READ NEXT: Calls for social welfare intervention among farmworkers
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain
