PRESS STATEMENT ON ILLICIT TRADE IN TOBACCO FOR IMMEDIATE RELEASE
(8 July 2018, Johannesburg)
The Food and Allied Workers’ Union (FAWU) has noted with concerns the release of the Illicit Tracking Study conducted by global market research firm, Ipsos. The study shows that cheap, illicit tobacco products are flooding the informal retail sector in large volumes, and that they are widely available in 75% of non-organized tobacco handling outlets, with high availability rates in Western Cape (79%) and Gauteng (75%).
The tobacco sector is a source of employment and income of many for our members in the tobacco value-chain, from tobacco leaf growing up to cigarette manufacturing and the aggressive growth of the tobacco illicit trade, which is said to account for one third of all tobacco products sold in the non-organized retail universe, continues to lead to more jobs lost and the problem will worsened if government does nothing to curb it.
FAWU, supported by the South African Federation of Trade Unions (SAFTU), is fully behind law-abiding and tax-paying farmers, agro-processing operators as well as manufacturers in the tobacco and other affected value-chains who protested at the offices of SA Revenue Services (SARS) in a FAWU-led National Day of Action against Illicit Trade earlier this year on the 06 March 2018.
“As FAWU, we call on government to put the pressure on SARS to take a tougher stance on illicit traders who manufacture and sell cheap, unregulated products as they do not pay excise duties and/or Value-Added-Tax (VAT). Every South African can feel the pinch of the recently increased VAT – so it is unacceptable for illicit traders to evade what citizens pay for on a daily basis – right under the nose of SARS,” continues Masemola.