Cigarette & Tobacco Pricelist Update Effective 1st March 2021

We have been provided with the new wholesale and retail price lists from all 4 tobacco companies.

We can confirm that, although there are slight variations in the new wholesale prices when compared to the current prices, these variations are very minimal and can be downward as well as upward.

The most important thing to remember is that once you commence trading on the morning of Monday 1st March you should ensure that the prices at which you sell products that attract Standard rate VAT are properly reflecting the increase from 21% to 23% of VAT.

You should conduct an inventory of all “flashed” products and make a plan of how these products are to be offered for sale pre- and post-March 1st.

Very frequently after a Budget increase, some retailers provide a little “Grace” period to the public to obtain stock at the “old” price; this change is different, EACH and EVERY item sold that attracts 23% VAT will cost YOU money if you fail to increase those prices that were calculated at a 21% pricepoint.

You are no doubt aware that the only product that you are obliged by law to sell at a Government Department-approved retail price are cigarettes (not RYO, cigars or pipe tobacco).

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