UPDATE: Marchers slam state over illicit cigarette trade

“We know that the illicit trade of tobacco is a huge problem that continues to cripple the development of our economy.”

Felicia Nkhwashu

August 14, 2018

Unions demand for an immediate shut down of illegal suppliers. Photo: Supplied

Several unions took to the streets of Pretoria on Tuesday to march against the illicit tobacco trade.

The protesters marched from Tshwane events centre to the headquarters of the national treasury near Church Square to demand action against illegal cigarettes.

They demanded that the minister of finance Nhlanhla Nene shut down illegal tobacco suppliers immediately.

The food and allied workers’ union (Fawu) led the march supported by members of the South African federation of trade unions (Saftu), local tobacco farmers and informal traders.

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“Our mandate is to protect the jobs of South African workers because they are the fuel of our economy,” said Katishi Masemola, general secretary of Fawu.

“We know that the illicit trade of tobacco is a huge problem that continues to cripple the development of our economy. These criminals are getting away with a wide range of serious offences, including tax evasion, which, in turn, eradicates jobs.

“Although these criminals are known – absolutely nothing is being done to bring them to book, which is unacceptable,” said Masemola.

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He said tax authorities also had to clamp down on illegal cigarette factories suspected of illicit trade given an alleged R7 billion loss in tax revenue.

Tobacco farmers and retailers said if the SA revenue service and treasury continued with their lukewarm approach of letting illicit producers dodge paying tax, then they may as well close shop.

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“Over the years we have seen a huge decline in the purchasing of local tobacco, forcing us to shed thousands of jobs in the farming sector. Criminals are killing our industry,” said Christo van Staden, managing director for Limpopo tobacco processors, speaking on behalf of commercial farmers.