R20 cigarettes could disappear as BATSA pushes R38 minimum price
Ipsos figures cited by BATSA show cheap cigarettes in three-quarters of stores, as the company calls for a R38 minimum price and tougher enforcement.
A British American Tobacco company in South Africa, BATSA, is lobbying for a minimum retail price of R38 per pack on cigarettes to combat widespread illicit tobacco sales. Approximately three-quarters of stores surveyed found cigarettes priced below the minimum tax of R27.12 per pack, with nearly 65% selling packs under R20. BATSA claims illicit tobacco remains prevalent and calls for a clear threshold to simplify enforcement.
Currently, various laws are needed to identify illicit products, requiring SAPS to bring in specialists from other government areas. BATSA also seeks to withdraw manufacturing licenses from companies under-declaring production or evading taxes. Their proposal has received support from the South African Revenue Service, which believes minimum unit pricing could deter sales below a certain price and make the illicit market less profitable.
However, BATSA has faced allegations about its own anti-illicit trade activities. Former SARS investigator Johann van Loggerenberg examined disputes over intelligence gathering, enforcement, and competition between cigarette manufacturers in his book Tobacco Wars. BATSA has previously denied these allegations, stating its activities were to assist law-enforcement authorities in combating illicit tobacco.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
