{"id":29953,"date":"2025-09-21T09:58:39","date_gmt":"2025-09-21T07:58:39","guid":{"rendered":"https:\/\/www.gauteng.net\/whats-on-g\/?p=29953"},"modified":"2026-03-12T09:49:33","modified_gmt":"2026-03-12T07:49:33","slug":"can-south-africa-beat-the-illicit-cigarette-market","status":"publish","type":"post","link":"https:\/\/www.gauteng.net\/whats-on-g\/can-south-africa-beat-the-illicit-cigarette-market\/","title":{"rendered":"Can South Africa Beat the Illicit Cigarette Market? SARS Weighs In"},"content":{"rendered":"\n<p>South Africa is battling a booming underground economy, one that thrives in plain sight. The illicit cigarette market has become one of the country\u2019s most pressing economic, social, and public health challenges. At the centre of this fight are the South African Revenue Service (SARS) and the South Africa Tobacco Transformation Alliance (SATTA).<\/p>\n\n\n\n<p>The question now is urgent: Can South Africa beat the illicit cigarette market? SARS says it&#8217;s possible, but only if enforcement, policy reform, and public action work in unison.<\/p>\n\n\n\n<p>Read our detailed <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/roadmap-to-2030-south-africa-illicit-cigarette-trade\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Roadmap to 2030<\/strong> to see how South Africa can slash the illicit cigarette trade<\/a> and rebuild its legal market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-r28-billion-question-what-s-at-stake\"><strong>A R28 Billion Question: What\u2019s at Stake?<\/strong><\/h2>\n\n\n\n<p>The stakes are staggering. SATTA reports that the South African fiscus loses over R28 billion annually due to untaxed, illicit cigarettes. That\u2019s money that could fund public healthcare, education, and infrastructure.<\/p>\n\n\n\n<p><a href=\"https:\/\/tobaccotransformationalliance.co.za\/now-is-the-time\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">According to SATTA<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Illicit tobacco products account for 60\u201370% of cigarette sales and cause tremendous damage to the fiscus.&#8221;<\/em><\/p>\n<\/blockquote>\n\n\n\n<div id=\"gaute-2979038363\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-how-big-is-the-illicit-cigarette-market-in-2025\"><strong>How Big Is the Illicit Cigarette Market in 2025?<\/strong><\/h2>\n\n\n\n<p>Recent data from UCT\u2019s Research Unit on the Economics of Excisable Products (REEP) and SATTA confirms that up to 70% of cigarettes sold in South Africa are illicit. In some townships, this number is even higher, with packs sold for as little as <strong>R5<\/strong>\u2014far below the Minimum Collectable Tax (MCT) threshold.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.timeslive.co.za\/news\/south-africa\/2025-07-08-alarming-rise-of-cheap-illicit-cigarettes-in-sa-shops\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">An <strong>Ipsos study<\/strong><\/a> published in July 2025 found that 76.7% of shops surveyed in Gauteng were selling illicit cigarette packs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sars-strikes-back-raids-seizures-and-crackdowns\"><strong>SARS Strikes Back: Raids, Seizures, and Crackdowns<\/strong><\/h2>\n\n\n\n<p>SARS has been stepping up its enforcement. In August and September 2025, SARS conducted multiple raids on manufacturing facilities, retail outlets, and border posts. In one major bust, SARS seized over R43 million worth of illicit cigarettes at the Beitbridge border.<\/p>\n\n\n\n<p>SARS Commissioner Edward Kieswetter noted:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe will not tolerate criminal and illicit economic activity\u2026 and we will make it hard and costly for such persons.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<div id=\"gaute-14779277\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-satta-speaks-the-legal-industry-is-under-siege\"><strong>SATTA Speaks: The Legal Industry Is Under Siege<\/strong><\/h2>\n\n\n\n<p>SATTA, a coalition of legal tobacco stakeholders, is increasingly positioned as the <strong>authoritative voice<\/strong> in this space. Their recent campaign warns that the <strong>legal industry is on the brink of collapse<\/strong> due to the scale of criminal activity.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe believe that the legal industry is completely pushed out of the market and could collapse, leaving criminal networks in charge.\u201d<\/em> \u2013 SATTA spokesperson<\/p>\n<\/blockquote>\n\n\n\n<p>In fact, 92% of black tobacco farmers have exited the industry since 2019, with only 10 emerging farmers remaining.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-the-illegal-cigarette-trade-thrives\"><strong>Why the Illegal Cigarette Trade Thrives<\/strong><\/h2>\n\n\n\n<p>There are four primary drivers of the illicit trade in South Africa:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Price Advantage<\/strong>: Illicit brands bypass excise taxes, selling at R5\u2013R10 per pack.<\/li>\n\n\n\n<li><strong>Weak Border Control<\/strong>: Smuggling from Zimbabwe and Mozambique remains rampant.<\/li>\n\n\n\n<li><strong>Corruption &amp; Licensing Loopholes<\/strong>: Illegal operators exploit gaps in enforcement and oversight.<\/li>\n\n\n\n<li><strong>COVID-19 Sales Ban Fallout<\/strong>: The 2020 tobacco sales ban entrenched illicit networks that remain active today.<\/li>\n<\/ol>\n\n\n\n<p>Read more in\u00a0<a href=\"https:\/\/www.gauteng.net\/whats-on-g\/the-policy-fix-curb-illicit-cigarettes\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>The Policy Fix: What South Africa Must Do to Curb Illicit Cigarettes<\/strong><\/a>\u00a0for actionable strategies to strengthen enforcement and close loopholes in the cigarette trade.<\/p>\n\n\n\n<div id=\"gaute-3338769138\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-the-role-of-policy-can-lawmakers-help\"><strong>The Role of Policy: Can Lawmakers Help?<\/strong><\/h2>\n\n\n\n<p>While enforcement is critical, policy reform must follow. SATTA has been vocal about the need for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A <strong>Minimum Retail Price (MRP)<\/strong> for cigarettes to eliminate pricing loopholes.<\/li>\n\n\n\n<li>Mandatory <strong>track-and-trace systems<\/strong> for all cigarette production and distribution.<\/li>\n\n\n\n<li><strong>Revocation of licenses<\/strong> for manufacturers found selling below the MCT threshold.<\/li>\n<\/ul>\n\n\n\n<p>SATTA also warns that certain proposals in the Tobacco Products and Electronic Delivery Systems Control Bill (TPENDS), like plain packaging, could <em>unintentionally benefit the black market<\/em> if rolled out without proper enforcement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-public-health-in-the-crosshairs\"><strong>Public Health in the Crosshairs<\/strong><\/h2>\n\n\n\n<p>The illicit cigarette market isn\u2019t just an economic issue; it\u2019s a public health crisis. Illegal cigarettes often skip regulatory warnings and are more accessible to young South Africans, undermining anti-smoking campaigns.<\/p>\n\n\n\n<p><a href=\"https:\/\/tobaccotransformationalliance.co.za\/wp-content\/uploads\/2024\/10\/SATTA-fact-sheet-2-FINAL.pdf?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">SATTA\u2019s research shows<\/a>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe availability of cheap, unregulated cigarettes drives youth smoking rates and defeats public health efforts.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<div id=\"gaute-1934367423\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-can-south-africa-beat-the-illicit-cigarette-market\"><strong>Can South Africa Beat the Illicit Cigarette Market?<\/strong><\/h2>\n\n\n\n<p>The answer: <strong>Yes, but not without a coordinated strategy<\/strong>. The key components must include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consistent SARS enforcement<\/strong> at borders, retail points, and manufacturing hubs.<\/li>\n\n\n\n<li><strong>Political will<\/strong> to implement and enforce a Minimum Retail Price.<\/li>\n\n\n\n<li><strong>Public awareness<\/strong> campaigns urging consumers to \u201cBuy Legal, Stay Legal.\u201d<\/li>\n\n\n\n<li><strong>Prosecution and conviction<\/strong> of key syndicate members, not just street-level sellers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-roadmap-to-2030-what-success-looks-like\"><strong>A Roadmap to 2030: What Success Looks Like<\/strong><\/h2>\n\n\n\n<p>SATTA has outlined a bold but achievable goal: <strong>Reduce the illicit cigarette market to 20% by 2030<\/strong>.<\/p>\n\n\n\n<p>This will require:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digitised track-and-trace across supply chains.<\/li>\n\n\n\n<li>Licensing reform for manufacturers and retailers.<\/li>\n\n\n\n<li>Enhanced multi-agency coordination between <strong>SARS, SAPS, the Hawks, and the NPA<\/strong>.<\/li>\n<\/ul>\n\n\n\n<div id=\"gaute-2903935978\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-reporting-matters-what-can-you-do\"><strong>Reporting Matters: What Can You Do?<\/strong><\/h2>\n\n\n\n<p>SATTA encourages all South Africans to report illicit cigarette sales through their dedicated platform:<br><a href=\"https:\/\/tobaccotransformationalliance.co.za\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Report Illegal Cigarettes Here<\/strong><\/a><\/p>\n\n\n\n<p>You can also verify cigarette packs by checking:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The diamond stamp<\/strong><\/li>\n\n\n\n<li><strong>The pack price<\/strong> (must be above MCT)<\/li>\n\n\n\n<li><strong>Correct health warnings<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Learn how to spot illegal packs\u00a0in<a href=\"https:\/\/www.gauteng.net\/whats-on-g\/the-r26-22-rule-how-to-tell-if-your-cigarettes-are-legal-or-not\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>\u00a0The\u00a0R26.22 Rule: How to Tell if Your Cigarettes Are Legal or\u00a0Not\u00a0<\/strong><\/a>and\u00a0protect yourself from illicit trade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-fight-worth-fighting\"><strong>A Fight Worth Fighting<\/strong><\/h2>\n\n\n\n<p>Can South Africa beat the illicit cigarette market? The answer lies in collective action. SARS is working. SATTA is advocating. But it\u2019s also up to the public, policymakers, and industry to enforce change.<\/p>\n\n\n\n<p>The cost of inaction is high: billions lost, jobs destroyed, and youth put at risk. But with determination, smart policy, and effective enforcement, South Africa <em>can<\/em> reclaim its cigarette economy from the criminal underworld.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Illicit cigarette trade costs South Africa over R28 billion yearly. Can SARS and SATTA turn the tide on this growing black market?<\/p>\n","protected":false},"author":11,"featured_media":29954,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_focus_keyword":"","rank_math_title":"","rank_math_description":"Illicit cigarette trade costs South Africa over R28 billion yearly. Can SARS and SATTA turn the tide on this growing black market?","footnotes":""},"categories":[47],"tags":[9974,9978,9973,9976,9975,9979,9972,9977],"class_list":{"0":"post-29953","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-cigarette-smuggling-sa","9":"tag-diamond-stamp-cigarette-pack","10":"tag-illicit-cigarette-trade","11":"tag-public-health-impact-of-smoking","12":"tag-report-illegal-cigarettes","13":"tag-satta-campaign","14":"tag-tobacco-tax-evasion","15":"tag-tobacco-transformation-alliance"},"_links":{"self":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/comments?post=29953"}],"version-history":[{"count":1,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29953\/revisions"}],"predecessor-version":[{"id":29955,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29953\/revisions\/29955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media\/29954"}],"wp:attachment":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media?parent=29953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/categories?post=29953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/tags?post=29953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}