Lost Tax Revenue to Smuggled Tobacco in South Africa

Cigarette smuggling in South Africa leads over 5.5 billion cigarettes, or 20 percent of all cigarettes in the country, to have been sold on the black market.

The South African Government loses an estimated $300 Million (2.2 Billion South African Rand) in tax revenue to cigarette smuggling, which is roughly the same amount as the legitimate tax revenue.

Source: Chris Blane, “SA’s illicit cigarette trade,” Moneyweb, August 1, 2010.