Source: Yusuf Abramjee, founder of Tax Justice South Africa (29 April 2020)
Verdict
Explainer: Excise tax revenues for tobacco sales in April 2020, the first full month of the Covid-19 lockdown, were down more than R36 million daily compared to April 2019.
Conclusion: Abramjee is mostly correct, although tobacco tax collection varies significantly
Yusuf Abramjee, founder of advocacy group Tax Justice South Africa, claimed that the country loses "R35 million each and every day" due to the ban of tobacco sales enforced during the Covid-19 lockdown.
The data Abramjee had access to when he made the claim shows that R34 million in tobacco excise tax was collected on average every day in the last financial year.
Data released after Abramjee made his claim showed that the daily amount of tobacco tax collected in the first full month of lockdown, April 2020, was down R36.2 million per day compared to April 2019 and R60.5 million per day compared to April 2018.
New numbers released by revenue service
Two days after Abramjee made his claim it was reported that SARS had estimated under-recovery of roughly R400 million in "cigarette" excise taxes during the first 29 days of April.
