RSL ups bid to combat contraband trade

. . . as M126 000 illicit tobacco goes up in smoke

MOSA MAOENG

MASERU – A dramatic scene unfolded on Monday this week at the Tšoeneng Landfill in Rothe, where the Revenue Services Lesotho (RSL) set ablaze a massive haul of illicit cigarettes.

With an estimated street value of M126,000, the destruction of 76 boxes and 557 cartons of smuggled cigarettes, including brands like Boss, Dunhill, Red and Black, Ossum, Rizla, and Tambuti Snief, sent a clear message about the government’s stance on illegal trade.

These cigarettes, seized from hawkers who had evaded both declaration and excise duties, were part of a growing problem in Lesotho.

They compete with legally imported cigarettes that are taxed, making them cheaper and more accessible, but also unregulated and potentially harmful. The action drew varied reactions from the public. ’Mampho Lebeko, a concerned mother, expressed relief. “We are grateful for this,” she said, her voice filled with emotion.

“These Boss cigarettes were harming our children. The youth have turned to these because they are cheaper.” Her comments reflect a widespread concern about the impact of cheap, illicit tobacco on public health. In contrast, Thabang Mofolo, a vendor from Ha Tsolo, offered a more critical view. “Our country is already poverty-stricken with high unemployment,” he explained.

“People, especially the youth, are driven to illegal means just to survive. It is unfortunate that the government has ignored the struggles of the Basotho, leaving many with no choice but to resort to smuggling.”

Mofolo’s perspective sheds light on the socio-economic factors driving illicit trade, revealing the complex interplay between economic hardship and illegal activities. The economic impact of this illicit trade is significant. The Principal Economist at the Central Bank of Lesotho (CBL) Retšelisitsoe Mabote, highlighted the broader consequences.

“The smuggled cigarettes bypassed excise and import duties, leading to understated revenue,” Mabote said. “This not only creates unfair competition for legitimate traders but also affects tax collections, including income tax and VAT.”

Beyond the financial repercussions, Mabote emphasised the health risks. “Illicit cigarettes are a health hazard,” he warned. “Without known production standards, their consumption could strain health budgets, as users may face health issues requiring medical care.”

The RSL Manager Inland Ports Services Lebohang Nokana, outlined the measures being taken to combat smuggling. “These cigarettes were not declared at the border, making them illicit,” Nokana explained. “Legitimate cigarettes are produced in customs and excise manufacturing warehouses and carry a demo stamp. Without this stamp, the tobacco is considered illegal.”

Nokana detailed ongoing efforts to tackle the issue. “We work with the anti-smuggling office and the police to ensure illegal cigarettes are removed from shops, even in remote villages. Collaboration with South Africa is also crucial in preventing smuggling. We hold joint meetings to strategise and address these issues.”

Nokana also noted that the issue extends beyond Lesotho. “This problem affects all the Southern African Customs Union (SACU) countries,” he said. “South Africa has been instrumental in providing information on identifying illicit tobacco. It is a regional fight against the black market.”

Studies suggest that Lesotho serves as a transit point for smuggled cigarettes, with import data indicating more cigarettes arriving than are consumed locally. This highlights the need for coordinated regional efforts to address the issue effectively.

The COVID-19 pandemic further complicated the situation. In 2020, the Lesotho Mounted Police Service (LMPS) issued a warning about illicit tobacco smuggling between Lesotho and South Africa. During the pandemic, South Africa banned tobacco sales, while Lesotho continued to allow it, creating a lucrative opportunity for smugglers.

Police Spokesperson, Senior Superintendent Mpiti Mopeli noted that many smuggling operations are facilitated through social media, where local sellers advertise tobacco products to South African buyers. This, he said leads to an increase in illegal border crossings as South Africans sought to purchase tobacco products in Lesotho.