In addition, Sars is set to lose R7 billion in taxes this year, the Tobacco Institute of Southern Africa (Tisa) said yesterday.
Research by Ipsos, commissioned by the institute, showed that most cigarettes in the market were sold at below R17.85c a pack, the minimum amount taxed by Sars.
Selling a pack below the Sars minimum taxable amount is illicit. Any manufacturer of such products is in fact evading paying tax, said the institute's Francois van der Merwe.
“The market is flooded with cheap cigarettes, affordable and available to children and the vulnerable, and a threat to jobs in the tobacco industry.