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In a significant move to combat illicit trade in the tobacco industry, the South African Revenue Service (SARS) has recently announced the destruction of a staggering 20 million illegal cigarettes.
Valued at $2.3 million, this action underscores the commitment of SARS to clamp down on illegal activities within the tobacco sector.
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The Deputy SARS Commissioner for Taxpayer Engagement and Operations, Johnstone Makhubu, has attributed the surge in illicit trade of cigarettes to the challenging circumstances created by the COVID-19 pandemic.
The outbreak of the COVID-19 pandemic disrupted economies worldwide, leaving many industries vulnerable to exploitation and criminal activities.
The tobacco industry was no exception. As government imposed lockdown measures and restricted movement to contain the spread of the virus, the illicit cigarettes trade began to thrive.
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Deputy SARS Commissioner Makhubu highlights that the pandemic created an ideal environment for the illicit trade of cigarettes to flourish.
SARS has destroyed 20 million illegal cigarettes valued at $2.3 million. Deputy Sars Commissioner for Taxpayer Engagement and Operations Johnstone Makhubu says there was a rise in tobacco illegal trade at the height of the Covid-19 pandemic.
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The closure of legal distribution channels, disruptions in supply chains, and economic hardships faced by many individuals contributed to a surge in demand for cheaper alternatives.