The illicit cigarette barons’ annual R29-billion tax robbery…

With the latest VAT increase, South Africa is set to lose R29 billion in excise tax revenue a year. In this interview, Johnny Moloto, the Sub-Saharan Head of Corporate and Regulatory Affairs of  British American Tobacco (BAT), describes how the illicit cigarette trade exploded during the 2020 COVID-19 tobacco sales ban - and now accounts for 75 percent of the total cigarette market. He says the industry still has not seen the effects of the dismantlement of an illicit gold and tobacco network announced by President Cyril Ramaphosa in his recent SONA speech. “It took us all by surprise…We would like to hear more about which syndicate that was,” he says. As for persistent rumours that the cigarette barons have friends in high places, he says: “Why is it always the usual suspects that are always being picked up by … research? Maybe we ought to look into this, if only to satisfy our curiosity and put this matter to bed so that there isn't this speculation about the complicity of politicians as well as government authorities.” Moloto lists proposed solutions to combat this arm of organised crime more effectively.