The Tobacco Institute of Southern Africa has warned that a rushed new system for tracking cigarettes would see a multi-billion rand tender awarded to a monopoly yet may fail to curb the R8 billion illegal cigarette trade.
TISA chairman, François van der Merwe, said the new system was originally conceptualised under the watch of Tom Moyane while he was SARS commissioner. He said SARS intended to appoint a single service provider for an unprecedented eight years to implement a system that would impact on wholesalers, retailers, distributors and manufacturers, at significant cost and without consulting the value chain stakeholders.Any new system should primarily focus on addressing the main problem, which was volume verification through digital technology at the point of manufacture, said TISA.
“Rolling out such a sophisticated, IT-intensive system requires enough time for preparation, consultation and testing and TISA is concerned that the rushed process being followed by SARS has skipped these critical steps,” he said.
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