Illicit tobacco sales a drag on tax collections

The South African Revenue Service (Sars) says lower-than-expected collections were received from cigarettes for the 2024 fiscal year.

- Anathi Madubela

Total revenue collected from specific excise duties - described as duties imposed on certain goods based on quantity rather than value (alcoholic beverages, tobacco products and fuel and petroleum products) - of R53 552 million represented a shortfall of R420 million.

Tax revenue from cigarettes was R0.8 billion lower (down 8.4%), spirits R0.2 billion lower (down 1.6%), and petroleum lower by R0.1 billion (10.3%).

This is according to Sars's annual report published on Tuesday along with the 2024 tax revenue statistics.

The taxman collected R1.855 trillion in the fiscal year through March - almost R9 billion more than National Treasury's revised estimate of R1.846 trillion in its 12 March budget.