Baseline: price breakdown and quantity and revenue analysis
| Imported | Premium | Popular | Economy | Illicit | Total | |
| Price breakdown (per pack of 20 cigarettes) | ||||||
| Retail price | R45.00 | R48.00 | R40.00 | R28.00 | R19.60 | |
| Taxes | ||||||
| Excise | R18.78 | R18.78 | R18.78 | R18.78 | R0.00 | |
| VAT | R5.87 | R6.26 | R5.22 | R3.65 | R0.00 | |
| NOT price | R20.35 | R22.96 | R16.00 | R5.57 | R19.60 | |
| Quantity and revenue analysis | ||||||
| Consumption (million packs) | 59 | 90 | 476 | 155 | 420 | 1200 |
| Government revenue (R billion) | 1.47 | 2.26 | 11.41 | 3.47 | 0.00 | 18.61 |
| Excise tax revenue (R billion) | 1.12 | 1.70 | 8.93 | 2.90 | 0.00 | 14.65 |
| VAT revenue (R billion) | 0.35 | 0.57 | 2.48 | 0.56 | 0.00 | 3.96 |
| Industry revenue (R billion) | 1.21 | 2.07 | 7.61 | 0.86 | 8.23 | 19.99 |
| Other assumptions | ||||||
| Price elasticity of demand (εX) | −0.4 | −0.4 | −0.6 | −0.8 | −0.8 | |
| Cross-price elasticity of demand (εYX) | – | – | 0.3 | 0.2 | 0.2 |
We use information on the South African tax structure to decompose each segment’s retail price into excise tax, VAT and NOT price.
NOT, net-of-tax.