In just the past month, SARS has lost R1.5-billion in taxes.

And, it fears the continued ban will fuel the illicit tobacco trade.

Treasury has told Parliament that it’s in a bind to fund the country’s response to the COVID-19 pandemic, while it’s losing tax revenue.

But now it has to find the money to respond to the COVID-19 crisis.

This includes considering a loan from the International Monetary Fund.

“My understanding is there won’t be any conditions attached. In fact, I’m not interested in discussing conditionalities with the IMF. We know what we need to do for our economy, and we will do what we need to do domestically ourselves,” said Finance Minister, Tito Mboweni.

But the taxman is already feeling the pinch of the booze and cigarette ban.

The Finance Minister says lost revenue from sin taxes, has also added to his woes.

“I didn’t like the continuous ban on tobacco and alcohol, but I lost the debate therefore I have to toe the line. I know I’m losing a lot of revenue while being under pressure to spend,” said Mboweni.

eNCA