MZANSI is one of biggest illicit cigarette markets in the world, said British American Tobacco South Africa (Batsa).
A new report by leading market researcher Ipsos shows that trade in tax-evading tobacco has exploded in the past year.
In their nationwide survey in March, Ipsos found that the vast majority of stores in hotspot provinces sold cigarettes below the Minimum Collectible Tax (MCT) of R20.1.
This included the Western Cape at 79%, followed by the Free State at 74% and Gauteng at 69%.
Batsa general manager Johnny Moloto described the figures as “outrageous”.
“This research is damning proof that the blooming illegal trade in cigarettes is costing South African taxpayers billions of rands in lost revenue,” said Moloto.
He said: “Criminal cartels who ruthlessly exploited the tobacco sales ban have since maintained their grip on the sector and we now have one of biggest illicit cigarette markets in the world.”
Batsa is stepping up calls for an urgent inquiry into the cigarette market.
Tax Justice SA (TJSA) founder Yusuf Abramjee said this was “daylight robbery”.
“The national state of disaster may be over, but the disastrous impact of the lockdown sales ban is actually getting worse,” said Abramjee.
He said: “This damning new Ipsos report shows that the illicit trade in cigarettes that was fuelled by the lockdown ban is now entrenched across the country and authorities appear unable or unwilling to tackle it.”
TJSA indicated that there are four times as many fuel station shops selling cigarettes than a year ago and a single pack can now be bought for as little as R7, cheaper than in the last survey in October.
Brands registered to Gold Leaf Tobacco Corporation were found to comprise half of all the products selling below the MCT.
