Illicit Trade
Illicit trade is the production, distribution and sale of goods outside legal regulatory frameworks, typically to evade taxes, duties or product standards. It encompasses counterfeit products, smuggled goods and items sold through unlicensed channels that bypass official customs and excise controls. The practice spans multiple sectors including tobacco, alcohol, pharmaceuticals, textiles and consumer electronics, with significant concentrations in high-tax categories where price differentials create strong incentives for illegal operators. Illicit trade undermines legitimate businesses by creating unfair competition, erodes government revenue through lost tax and duty collections, and often funds organised crime networks. In South Africa, illicit trade in tobacco products has been a particular concern, with industry estimates suggesting substantial market share losses to illegal cigarettes that avoid excise duties. The South African Revenue Service works with law enforcement agencies to combat illicit trade through border controls, factory inspections and retail enforcement operations. Governments typically address illicit trade through a combination of regulatory measures, enforcement actions and international cooperation agreements to track cross-border smuggling. The economic impact extends beyond direct revenue losses to include job losses in legitimate manufacturing, reduced investment in compliant facilities and broader damage to the rule of law. Industry bodies and manufacturers frequently advocate for stronger enforcement and balanced tax policies that do not inadvertently widen the price gap that makes illicit alternatives attractive to consumers.
Illicit Trade Updates
South Africa says war puts R2-trillion revenue goal at risk
By: Bloomberg 8th May 2026 South Africa’s newly appointed tax commissioner warned that the Iran war could undermine the government’s ability to meet its revenue targets, as... →
Illicit cigarettes make up more than half the market
By: Econ3x3 1st April 2026 A nationally representative survey of South African smokers confirms that illegal cigarettes made up roughly 60% of the total market in 2021. This... →
ActionSA Seeks Formal Role in Illicit Trade Crackdown
4th March 2026 ActionSA has written to the Minister of Finance, Enoch Godongwana, requesting formal inclusion in the national task team established to combat... →
Electricity reform-type urgency required to save manufacturing – BLSA
By: Marleny Arnoldi 16th February 2026 Business Leadership South Africa (BLSA) CEO Busi Mavuso says in her latest weekly newsletter that the biggest omission in President Cyril... →
Lesufi's failure to curb illicit trade costs 230 jobs
26th January 2026 The Democratic Alliance (DA) Gauteng welcomes British American Tobacco SA’s (BATSA) commitment to reinvest in the Gauteng economy if illicit... →
Jobs are going up in smoke: SARS must clamp down on Illicit trade
16th January 2026 The DA is deeply concerned that British American Tobacco is closing its only manufacturing plant in South Africa – destroying hundreds of precious... →
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