The illicit cigarette trade in South Africa is a booming black market. It causes severe damage to the economy and costs thousands of legitimate jobs every year. Despite efforts from government and law enforcement, this illegal industry remains widespread. It continues to drain billions from the national revenue. Understanding the scale of the problem and the measures needed to combat it is vital for South Africans who want to protect jobs and promote a fair economy.<\/p>\n\n\n\n
Recent research reveals that illicit cigarettes make up around 60% of the cigarette market in South Africa<\/strong>. This is a significant increase from just 5% in 2006. This surge means that more than half of the cigarettes consumed are bought illegally, without paying taxes<\/a>.<\/p>\n\n\n\n This black market activity costs South Africa approximately R28 billion every year<\/strong><\/a> in lost tax revenue. This loss is equivalent to nearly R100 million lost every working day<\/strong>. This is money that could have been used to support public services, infrastructure development, and job creation.<\/p>\n\n\n\n SATTA spokesperson Zacharia Punu Motsumi explains, <\/p>\n\n\n\n The illicit cigarette trade is crippling the legal tobacco economy, leading to a decline of over 22% in industry jobs since 2019<\/a>.<\/p>\n<\/blockquote>\n\n\n\n He points out that the illegal market is fueled by local manufacturers exploiting loopholes and cross-border smuggling. This smuggling comes primarily from Zimbabwe<\/a>.<\/p>\n\n\n\n\n