Saturday, 25 October 2025 – South Africa risks repeating the devastating mistakes made with cigarettes unless urgent action is taken to stop the country’s booming illicit alcohol trade, Tax Justice South Africa (TJSA) warns today.
This week, the South African Revenue Service (SARS) and South African Police Service (SAPS) told Parliament an all-out war was needed against the illegal tobacco trade, which now accounts for two out of every three cigarettes sold and costs the fiscus tens of billions of rand each year.
TJSA founder Yusuf Abramjee said the same criminal networks are now tightening their grip on the alcohol market.
“Weak enforcement and reckless regulation have allowed cigarette syndicates to loot our nation for years,” said Abramjee. “We must not allow illicit alcohol to follow the same path. Unless government acts decisively, this crisis will soon be out of control.”
Research by the Drinks Federation of SA shows that illicit alcohol already makes up around 18% of all alcohol sold in South Africa, costing the Treasury an estimated R16.5 billion in lost taxes last year alone.
Since 2017, the black market has grown by more than 55%, fuelled by lax enforcement, poor border control and rising excise taxes that make legal products unaffordable for many consumers.
“Every rand spent on illicit alcohol funds organised crime, corruption and violence,” Abramjee said. “Unregulated and often toxic products are putting lives at risk and destroying legitimate jobs.”
TJSA cautioned government against further “sin tax” hikes without fixing enforcement. “Higher taxes only drive more consumers toward illegal products,” Abramjee said. “We need stronger policing, tighter border control and intelligence-led operations, not policies that reward criminal syndicates.”
TJSA called on Parliament to strengthen penalties, including minimum sentences for convicted offenders, and to extend the enforcement drive shown against illicit cigarettes to all excisable goods.
“South Africa can’t afford another lost battle,” Abramjee concluded. “We need to lock up the kingpins before illicit alcohol drains our country’s future drop by drop.”
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