Prof. Keith Engel on the impact of illicit economy

407 views · Published 3 July 2018 · 9:36 · Indexed 21 September 2026

Channel: SABC News · 2018 · News & Politics

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All economic activity whether or not it is legal is subject to taxation. The impact of activities within the illicit economy is a real threat to the country and its impact is huge. The illicit economy refers to economic activities which operate outside of the rules and regulations of the country including organised crime. According to SARS, South Africa is losing a large portion of its GDP every year, to the illicit economy. This has mainly been in the form of smuggling of tobacco products, counterfeit textiles, drug manufacturing and smuggling, illicit mining of gold and diamonds, ivory smuggling and the poaching of endangered species like abalone and rhino.

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