Table 1

Baseline: price breakdown and quantity and revenue analysis

Price breakdown (per pack of 20 cigarettes)
Retail priceR45.00R48.00R40.00R28.00R19.60
NOT priceR20.35R22.96R16.00R5.57R19.60
Quantity and revenue analysis
Consumption (million packs)59904761554201200
Government revenue (R billion)1.472.2611.413.470.0018.61
  Excise tax revenue (R billion)1.121.708.932.900.0014.65
  VAT revenue (R billion)0.350.572.480.560.003.96
Industry revenue (R billion)
Other assumptions
Price elasticity of demand (εX)−0.4−0.4−0.6−0.8−0.8
Cross-price elasticity of demand (εYX)
  • 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.