Illicit trade shouldn’t deter heavy tax increases aimed at reducing smoking

Illicit trade is high, but not as high as the tobacco industry reports. While an overstatement of the illicit trade of tobacco products may suit the industry’s agenda ahead of the midterm budget, it should not deter strong tax increases aimed at reducing tobacco consumption. Focus should rather fall on strong law enforcement and securing…

Illicit trade is high, but not as high as the tobacco industry reports. While an overstatement of the illicit trade of tobacco products may suit the industry’s agenda ahead of the midterm budget, it should not deter strong tax increases aimed at reducing tobacco consumption. Focus should rather fall on strong law enforcement and securing the tobacco supply chain to reduce the illicit trade problem. While Batsa (British American Tobacco South Africa) has been headlining with comments that nearly 70% of all cigarettes being consumed in the South African market are from illicit brands, the research unit on the economics…