100 million fake cigarettes destroyed

Image courtesy of FreeDigitalPhotos.net and Salvatore Vuono

They were seized during various attempts to bring them into South Africa illegally through various methods of concealment and smuggling.

SARS' chief officer of customs, Gene Ravele, said the operation was a victory for both the industry and SARS.

"To make such an impact in the trade of illicit cigarettes is a victory for both the industry and for SARS, as there are potentially billions of rands in excise duties that SARS would not receive," said Ravele, committing SARS to working with TISA and other industries that are affected by the illicit trade that fails to comply with the country's laws.

According to TISA, illicit trade in cigarettes currently comprises more than 20% of the total cigarette market in South Africa.

This equates to more than 15 million cigarettes being sold illegally every day, or more than 6 billion per year. This defrauds the fiscus of more than R2.6 billion in unpaid excise duties.

Furthermore, illegal cigarettes pose an even greater threat to people's health, as these products do not comply with the strict government regulations to which legal manufacturers and traders adhere.

TISA CEO Francois van der Merwe believed that a private/public partnership between them, SARS and other government agencies is the only way to create a win-win situation in solving problems like illicit trade.

Members of the public have been urged to contact the fraud and anti corruption hotline on 0800 00 28 70 should they wish to report any suspicious business activity or alternatively to contact TISA's hotline at 0800 21 47 10 to report any unethical practices in the cigarette industry.