Illicit trade costs SA R5bn a year

Thanks to the efforts of law enforcement officials, customs and treasury, South reduced illicit trade from 31% to 23% over the past year, according to Francois van der Merwe, chairman of the Tobacco Institute of Southern Africa (TISA). And while it is encouraging to see declining figures in South Africa, the greater region as a whole remains a target as it is seen as an “easy market” for organised crime. “If the pressure is increased in one market, syndicates simply move to the next, which is a real concern,” he said. “Collaboration and cooperation are needed. Governments will not make a difference on their own. If we put our resources and expertise together there are some significant benefits to be achieved.” There are no winners from illicit trade apart from the illegal syndicates, said Van der Merwe. “Illicit trade steals vast amounts of money from the fiscus. Conservative estimates are that South Africa has lost more than R20 billion in tax revenue since 2010. This equates to around R5bn a year.” He said it eroded the market share of the legal industry in the country and it affected the economic viability of many of these businesses. ”Over and above that it erodes investor confidence and puts a tag around this country and this region,” said Van der Merwe. INSERT & CAPTION The region remains a target as it is seen as an easy market for organised crime. – Francois van der Merwe