New South Africa Government Urged to Tackle Illicit Trade

British American Tobacco (BAT) has urged South Africa to tackle its growing illicit tobacco trade, which costs the government ZAR24 billion ($1.32 billion) in lost excise tax annually. A recent Ipsos study found that 59% of stores sell illegal cigarettes for as low as ZAR5 per pack. With new manufacturers entering the market, concerns are rising about regulatory compliance. Johnny Moloto from BAT emphasizes the need for the government to prioritize action against illicit trade to safeguard the economy and suggests implementing a minimum retail price for cigarettes. The situation highlights significant challenges facing South Africa's new administration. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: Tobacco Reporter