Tobacco price hike: SAPS seize R16m of illegal cigarettes ‘hidden as bananas’

We can understand why the illegal cigarette racket is so ‘a-peel-ing’ for South African criminals, when it has this much money riding on it. SAPS in Limpopo have seized an almighty consignment of illicit tobacco, which was initially classified as ‘bananas’ and smuggled past the border with Zimbabwe.

Zimbabwe cigarette shipment ‘hidden as bananas’ seized in Limpopo

The enormous batch, containing thousands of packets of Remington Gold, was discovered on the same day Finance Minister Tito Mboweni announced that taxes on legitimate cigarettes would increase – and therein lies the problem: The illegal tobacco market, propelled by a five-month ban on ciggies in 2020, continues to flourish due to its cheaper prices.

There was also drama once the driver of the truck carrying these goods, with an estimated street value of R16 million, abandoned his vehicle and made a run for it. There was a R50 000 cash pile also left inside the cab…

Over R16m of illicit cigarettes seized in Limpopo. The load of Remington Gold was smuggled in from Zimbabwe. The driver abandoned the load & R50 000 cash was also found hidden in the truck. The load was cleared on the Zim side as bananas. @SANDFCorpEvents @sarstax @TaxJustice_SA pic.twitter.com/E4AbOyvYLA

— Yusuf Abramjee (@Abramjee) February 24, 2021

‘It’s a gift for the illicit tobacco market’ – Yusuf Abramjee

Yusuf Abramjee is the founder of Tax Justice SA. He has lamented the increased taxes for cigarettes, claiming that Mboweni’s move will only lead to more criminal acts such as this one. Indeed, the anti-crime advocate believes that the policy of charging more for legal goods is ‘bananas’ itself…

“Double-inflation sin tax hikes are another gift for criminals in illicit trade. The black market in tobacco and alcohol that exploded due to lockdown bans will soar further out of control, less tax will be collected and thousands of honest livelihoods will be lost. This is your business blueprint to kill off legitimate industries.”

“Taxes lost by government as a result of the lockdown add up to more than twice the amount it plans to spend on the vaccine roll-out. “Now the same law-abiding industries affected by those bans are being targeted to bail out a government that’s squandered so much. “Higher prices for legal products will only make illicit goods more attractive to consumers.”

How expensive will cigarettes be after tax hikes?

Effective immediately, the following products will require ordinary South Africans who indulge in alcohol and tobacco products to dig deeper into their pockets. 

• – 340ml can of beer or cider will cost an extra 14c;
• – A 750ml bottle of wine will cost an extra 26c; 
• – A 750ml bottle of sparkling wine an extra 86c;
• – A bottle of 750ml spirits, including whisky, gin or vodka, will increase by R5.50;
• – A packet of 20 cigarettes will be an extra R1.39c;
• – 25 grams of piped tobacco will cost an extra 47c, and;
• – A 23 gram cigar will be R7.71 more expensive.