National Tobacco Market Study

What it means for South Africa

ILLICIT BRANDS
ARE PRESENT IN 100,000 SHOPS IN
SOUTH
AFRICA
and have at least a 33.4% share of the non-organised market

OF ILLICIT TRADE IS BY
75% ONE MANUFACTURER
IN A FACTORY LICENSED BY SARS

BECAUSE OF ILLICIT TRADE SA HAS THE

CHEAPEST 1ST SMOKE IN THE WORLD….
RG THE 2ND
LARGEST
BRAND
IN THE COUNTRY IS AN
ILLICIT BRAND
ILLICIT
BRANDS
ARE FOUND FOR
AS LOW AS
R5PER PACK

IS MORE THAN
THE TAX LOSS
TO GOVERNMENT R7bn

Illicit is defined as any packs found selling at below minimum collectable tax per pack of 20 (R17.85) and any loose sticks selling below R1.

2018 ILLICIT TOBACCO STUDY

 Share of illicit by brand owner
6.3% 3.6%

2.3%

75.1% 1.9%

10.8%
Gold Leaf Tobacco
Best Tobacco Company
Amalgamated Tobacco Manufacturers
Savannah (Zimbabwe)
Carnilinx Tobacco Company
Other (including unidentifiable and unattributable brands)

Location of tobacco manufacturers with

brands selling below tax owed Limpopo

Limpopo

Mpumalanga
North West Gauteng

Mpumalanga Kwazulu-
North West Free State
Gauteng Natal

Northern Cape

Free State Kwazulu-

Natal

Northern Cape
Eastern Cape

Western Cape
Eastern Cape

Gold Leaf Tobacco (Pty) Ltd

Western Cape
Carnilinx (Pty) Ltd
Best Tobacco Company (Pty) Ltd
ATM (Pty) Ltd

Addresses obtained from public information

2018 ILLICIT TOBACCO STUDY

 Cigarette value chains

LEGAL ILLICIT

LOCAL FARMERS FULLY DECLARED FOREIGN FARMERS UNDER-DECLARED

LOCAL PRODUCERS LOCAL PRODUCTION

LITTLE OR NO TAX PAID

WAREHOUSING WAREHOUSING

DISTRIBUTION DISTRIBUTION

IT IS DIFFICULT TO
NO INVESTIGATIONS
DIFFERENTIATE LEGAL
OR ENFORCEMENT
FROM ILLICIT PRODUCT,
ESPECIALLY FOR
CONSUMERS.
RETAIL CONSUMPTION

2018 ILLICIT TOBACCO STUDY