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Illicit tobacco sales a drag on excise tax collections

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

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. 

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