PHILIP MORRIS SUPPORTS BATTLE AGAINST ILLICIT TRADE

TOBACCO company Philip Morris South Africa (PMSA) has welcomed Finance Minister Tito Mboweni’s March 2020 deadline for a major South African Revenue Services (Sars) study into the extent of illicit trade. Illegal trade in cigarettes alone has cost South Africa over R40 billion in tax revenue since 2010, according to the Tobacco Institute of Southern Africa. Overall, South Africa reportedly loses R1 trillion a year, or 20 percent of gross domestic product, to the illicit economy, with proceeds generally used to fund drug smuggling, human trafficking and other serious crimes. Mboweni’s commitment for Sars to look into the scourge is a welcome move, Philip Morris managing director Marcelo Nico said. “The findings of the Sars research into the illicit economy will help to strengthen co-operation between the state, private sector, and civil society. PMSA fully supports all efforts to combat illicit trade.” The next important step was for South Africa to ratify the Protocol to Eliminate Illicit Trade in Tobacco Products, Nico noted, saying that the country suffered from one of the highest rates of illicit tobacco trade globally. Beyond lost tax revenue, illicit cigarettes also undermined South Africa’s public health agenda as products may not comply with regulatory requirements, he added. “Our ultimate vision is for a smoke-free South Africa and the world,” he said. Philip Morris International has launched a $100 million (about R1.46 billion) global initiative to tackle illegal trade and related crimes such as corruption, money laundering and organised crime. African News Agency (ANA)