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Daily Investor South Africa

R5 for a pack of 20 cigarettes in South Africa

South Africa's black market cigarette trade has taken a significant hit, with the cheapest illicit pack of 20 cigarettes now costing as little as R5, a far cry from the R37 price tag of the country's cheapest legal pack. This drastic price drop is a result of the government's efforts to combat the illicit trade, which has been estimated to cost the South African Revenue Service billions in lost excise tax income each year. By tackling the issue through the National Illicit Economy Disruption Programme, SARS aims to reduce the price differential between legal and illicit cigarette products.

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