scholarly journals Illicit/cheap cigarettes in South Africa

2019 ◽  
Vol 23 (3) ◽  
pp. 242-262 ◽  
Author(s):  
Kirsten van der Zee ◽  
Corné van Walbeek ◽  
Sibahle Magadla
Keyword(s):  
South Africa ◽  
South African ◽  
National Income ◽  
Production Costs ◽  
Income Dynamics ◽  
African Government ◽  
Excise Tax ◽  
Illicit Trade ◽  
Taxation Policy ◽  
Tobacco Taxation

AbstractUsing wave 5 of the National Income Dynamics Study (conducted in 2017), this paper investigates the market for very low-priced cigarettes in South Africa, which, in all probability, are illicit. Since the sum of the excise tax and VAT in 2017 amounted to R16.30 (1.22 USD) per pack, any cigarettes selling for R20 (1.50 USD) per pack or less are likely to be illicit, assuming reasonable production costs. By this definition, approximately 30% of cigarettes consumed in South Africa in 2017 were illicit. Illicit cigarettes are found across all nine provinces. At the margin, the purchase of illicit cigarettes is associated with lower socio-economic characteristics, such as having lower levels of income and education. As illicit cigarettes undermine both the fiscal and health agendas of tobacco taxation policy, these results highlight the need for the South African government to implement urgently effective measures in order to curb illicit trade.

scholarly journals Illicit cigarette trade in South Africa: 2002–2017

2019 ◽  
Vol 29 (Suppl 4) ◽  
pp. s234-s242 ◽  
Author(s):  
Nicole Vellios ◽  
Corné van Walbeek ◽  
Hana Ross
Keyword(s):  
South Africa ◽  
South African ◽  
Gap Analysis ◽  
National Income ◽  
Effective Control ◽  
Control Mechanisms ◽  
Income Dynamics ◽  
Effective Measure ◽  
Illicit Trade ◽  
Nationally Representative

BackgroundIncreasing cigarette excise taxes is widely recognised as the most effective measure to reduce the demand for cigarettes. The presence of illicit trade undermines the effectiveness of tax increases as both a public health and a fiscal measure, because it introduces cheaper alternatives to legal, full-priced cigarettes.ObjectiveTo assess trends in the size of the illicit cigarette market in South Africa from 2002 to 2017 using gap analysis.MethodsTax-paid cigarette sales are compared with consumption estimates from two nationally representative surveys: the All Media and Products Survey and the National Income Dynamics Study. We explore the size of the illicit cigarette market and its changes over the period 2002–2017.ResultsSince 2009, illicit trade has increased sharply. We estimate that illicit trade is between 30% and 35% of the total market in 2017. The acceleration in the growth of the illicit market since 2015 corresponds with a turbulent time at the South African Revenue Service, when many of the enforcement functions were greatly reduced.ConclusionsThe current levels of illicit trade are extremely high and need to be addressed urgently by implementing effective control mechanisms such as a track and trace system to monitor the production, taxation, and sale of cigarettes.

An overview of trends in depressive symptoms in South Africa

2019 ◽  
Vol 49 (4) ◽  
pp. 518-535
Author(s):  
Kinyanjui Mungai ◽  
Amiena Bayat
Keyword(s):  
Mental Health ◽  
South Africa ◽  
Socioeconomic Status ◽  
Depressive Symptoms ◽  
South African ◽  
Emotional Health ◽  
National Income ◽  
South African Context ◽  
Income Dynamics ◽  
African Context

The relationship between mental health and socioeconomic status is well established in the literature. The socioeconomic standing of a number of South Africans remains poor and slow changing, while the mental health of the most vulnerable remains both an economic and health problem for government. There is, however, a lack of studies that assess depressive symptoms using panel data. There is also a lack of studies that consider factors that influence transitions of adults into and out of Significant Depressive Symptoms, particularly in the South African context. Panel data from the National Income Dynamics Study were used for this study to assess these transitions. The data included information on various socioeconomic and health variables, as well as a section that assesses the emotional health of adults in South Africa. This emotional health section in National Income Dynamics Study was essentially a 10-item version of the Centre for Epidemiological Studies Depression scale. The study aimed to investigate how socioeconomic status is associated with the risk of adults transitioning into and out of Significant Depressive Symptoms in the South African context. The study found that the prevalence of adults who exhibited Significant Depressive Symptoms declined significantly in South Africa, despite the recent increase. Moreover, adults with a lower socioeconomic standing were identified as being particularly vulnerable to depression and struggled to transition out of Significant Depressive Symptoms.

Determinants of energy poverty in South Africa

2015 ◽  
Vol 26 (3) ◽  
pp. 66-78 ◽  
Author(s):  
Zaakirah Ismail ◽  
Patrick Khembo
Keyword(s):  
South Africa ◽  
South African ◽  
National Income ◽  
Department Of Energy ◽  
Income Dynamics ◽  
Energy Poverty ◽  
Policy Makers ◽  
Expenditure Patterns ◽  
Regression Framework ◽  
Individual Household

This paper provides empirical evidence on the determinants of energy poverty in South African households using the National Income Dynamics Survey (NIDS, 2012), while controlling for individual, household and demographic characteristics. This is formulated within a logistic regression framework, while defining energy poverty using the expenditure approach consistent with the definition by the Department of Energy (DoE) of South Africa. The model reveals that household expenditure patterns, race, education level, household and dwelling size, location of the household and access to electricity are important factors in explaining the state of energy in South African households. This paper also discusses limitations in defining energy poverty using the expenditure approach. Finally, some recommendations are made for regulators and policy makers.

scholarly journals Estimating the price elasticity of demand for cigarettes in South Africa using the Deaton approach

BMJ Open ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. e046279
Author(s):  
Chengetai Dare ◽  
Micheal Kofi Boachie ◽  
Ernest Ngeh Tingum ◽  
S M Abdullah ◽  
Corné van Walbeek
Keyword(s):  
South Africa ◽  
Price Elasticity ◽  
Low Income ◽  
National Income ◽  
Evidence Base ◽  
Middle Income ◽  
Excise Tax ◽  
Illicit Trade ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

ObjectiveTo estimate the price elasticity of demand for South Africa and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette demand in low-income and middle-income countries.MethodsWe employ the Deaton method, using wave 5 data from the South African National Income Dynamics Study, to estimate the cigarette price elasticity for South Africa. We used a sample of 6820 households.ResultsOf the 6 820 households in the sample for which we had sufficient data, 1341 (19.7%) spent money on tobacco. The price elasticity of demand for cigarettes is estimated at −0.86 (95% CI −1.37 to −0.35), implying that the demand for cigarettes in South Africa declines by 8.6% for every 10% increase in price.ConclusionThe negative price elasticity estimate for South Africa indicates that increases in the excise tax are particularly effective in controlling cigarette consumption. However, given the presence of a significant illicit tobacco market in the country, it is important that authorities augment tax measures with strategies that curb the illicit trade in cigarettes.

Migration and Remittances in South Africa

2021 ◽  
pp. 776-799
Author(s):  
Mark A. Collinson ◽  
Mduduzi Biyase
Keyword(s):  
South Africa ◽  
South African ◽  
Rural Households ◽  
National Level ◽  
National Income ◽  
Income Dynamics ◽  
Temporary Migration ◽  
Migration Rates ◽  
Areas Of Concern ◽  
Temporary Migrants

The chapter draws from two data sources to describe patterns and trends of internal migration and remittances in South Africa and explore what these mean for rural households. These are the National Income Dynamics Study (NIDS 2008–17) and the South African Population Research Infrastructure Network (2000–17). NIDS data show that at a national level there are high levels of non-resident household membership. As much as 24 per cent of African rural households have a non-resident member. This reflects temporary migration, especially of young adults. SAPRIN shows that temporary migration rates remain persistent over time, while definitive migration shows a gradual decline in incidence after 2003. Some temporary migrants send remittances, mostly of money, but also clothes and food. The study shows amounts averaging R1,100 per month from female migrants and R1,500 per month from male migrants in 2017. These can play a crucial role in food security for the poorest rural households and in improving human capital in better-off rural households. What has not been explored here are costs to the household of temporary migration, which help to explain why more households do not send temporary migrants. These include financial costs, but the main two areas of concern are health and social connection.

scholarly journals The Impact of Remittance on Poverty: Evidence from the South African National Income Dynamics Study (NIDS)

2015 ◽  
Vol 1 (1) ◽  
Author(s):  
Seyfe Wurku ◽  
◽  
Joyce Marangu ◽  
Keyword(s):  
South Africa ◽  
Regression Model ◽  
South African ◽  
National Income ◽  
Income Dynamics ◽  
Count Ratio ◽  
Logit Regression ◽  
Head Count ◽  
Logit Regression Model ◽  
The Impact

The study uses two approaches to assess the impact of remittance on poverty in South Africa. The first approach compares the level of poverty between remittance receiving households and non-receiving households using the FGT index. The second approach uses the logit regression model to estimate how remittance determines the probability of falling into a state of poverty. The findings show that remittance non-receiving households have a higher head count ratio compared to remittance receiving households. The probability of remittance non-receiving households being in a state of poverty is also higher than remittance receiving households. Whereas the poverty gap is higher for remittance receiving households compared to remittance non-receiving households, both groups of households have the same poverty severity level.

The Engagement of Beneficiaries in Farm Governance of Restituted Land through the Communal Property Association Model: The Ideal Versus the Reality of Beneficiary Farms in South Africa

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Mokoko Piet Sebola ◽  
Malemela Angelinah Mamabolo
Keyword(s):  
South Africa ◽  
South African ◽  
Land Reform ◽  
Farm Management ◽  
The South ◽  
African Government ◽  
Communal Property ◽  
Farm Ownership ◽  
Land Restitution ◽  
Communal Property Associations

The purpose of this article is to evaluate the engagement of farm beneficiaries in South Africa in the governance of restituted farms through communal property associations. The South African government has already spent millions of rands on land restitution to correct the imbalance of the past with regard to farm ownership by the African communities. Various methods of farm management to benefit the African society have been proposed, however, with little recorded success. This article argues that the South African post-apartheid government was so overwhelmed by political victory in 1994 that they introduced ambitious land reform policies that were based on ideal thinking rather than on a pragmatic approach to the South African situation. We used qualitative research methods to argue that the engagement of farm beneficiaries in farm management and governance through communal property associations is failing dismally. We conclude that a revisit of the communal property associations model is required in order to strengthen the position of beneficiaries and promote access to land by African communities for future benefit.

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