South Africa is now seeing the worst levels of illegal cigarette sales in years. A new study by Ipsos confirms that the trade has grown sharply, with most stores now offering cigarettes at prices far below legal limits.
Over 75% of Stores Selling Below Legal Price
According to the report, more than 75% of retailers are now selling cigarettes for less than the Minimum Collectible Tax (MCT). This means a pack of 20 is often sold for under R24.17, which is below the official threshold set by law.
The MCT exists to fight tax evasion and protect legal traders. However, this pricing trend shows how deeply illegal brands have entered the market. Even in formal retail outlets, low-cost and untaxed cigarettes are widely available.
Experts believe these sales are not by accident. In many cases, retailers knowingly stock brands that dodge excise duties, making it difficult for legal brands to compete fairly.
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British American Tobacco Raises Alarm
To discuss the findings, eNCA interviewed Johnny Moloto, who leads Corporate and Regulatory Affairs at British American Tobacco South Africa (BATSA).
He said that the current situation is worse than before the COVID-19 lockdown ban on cigarette sales. During the lockdown, illegal networks grew fast, and many of those operations are still running today.
Moloto warned that law enforcement is falling behind. While legal producers follow strict rules, many illegal operators face little to no punishment. This lack of action is allowing the black market to grow without limits.
What Needs to Happen Now
The tobacco industry and public health groups agree that urgent steps are needed. Without strong enforcement, the market will continue to be flooded with untaxed, cheap cigarettes.
Key steps that have been proposed include:
| Action Needed | Purpose |
|---|---|
| Enforce the Minimum Tax Rule | Protect legal trade and collect revenue |
| Close illegal manufacturing plants | Stop the supply at the source |
| Monitor retail pricing more closely | Identify and penalise repeat offenders |
| Public education on legal brands | Help buyers choose taxed, safe products |
Why This Affects Everyone
Illegal cigarettes may seem cheaper, but the long-term effects are serious. South Africa loses billions in tax money each year from this trade. This affects schools, clinics, and public services.
Health officials also worry about what goes into these untaxed products. With no quality checks, they may contain harmful or banned substances. Smoking remains one of the leading causes of preventable deaths in South Africa.
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Hi, I’m Amandeep Singh, a content writer at Ramnath Intercollage. I share updates on jobs, internships, and scholarships across South Africa using official and trusted sources. My aim is to make every post easy to read and helpful for anyone looking to apply.
