Dear Minister Tito Mboweni,

I trust you are well. Today I am writing to you with regards to an idea that could generate the revenue required for South Africa’s vaccine access. I previously shared the idea over social media and many suggested I write to the government as the idea would assist in the midst of the pandemic.

Approximately, 11 million South African’s smoke cigarettes or vape. During the first lockdown many law-abiding smokers were turned into criminals when they began purchasing illegal cigarettes off the street despite a cigarette ban. Smokers were paying almost triple for a pack of cigarettes and most often smoked a brand that would further cause harm to their bodies. I suggested the government places a tax of either R25 or 30% per pack of cigarettes. Should an average of 1 million smokers smoke a pack a day, the government can generate an additional R750 000 000 a month which can be used towards vaccine access in form of a ‘COVID19 Vaccine Tax’. Many people including smokers welcomed the idea and said it was a viable option for the government.

In addition, I also proposed a tax on the sale of alcohol as our people were also purchasing illegal alcohol for almost double the usual price. For alcohol the revenue collected via a ‘COVID19 Vaccine Tax’ would assist the government in acquiring the funds needed to minimise the effects of the pandemic. The tax amounts would vary as you could charge R30 for a six pack of beers/ciders and R70 for spirits/wines etc.

By taxing cigarettes and alcohol using the above method we can generate billions monthly to avert the negative effects of the pandemic.

Also with the additional ’COVID19 Vaccine Tax’, the government can continue to crowd fund. For example, public sector workers can contribute anything between R20 – R500 (once off or monthly should they wish) and high networth individuals (millionaires and billionaires) can contribute a generous amount. Furthermore, recognition can be given to those who donate over a certain figure (for example; special recognition for those who donate over R1 500 000). This will create unity amongst our people as this will show the ‘rich caring for the poor’, the true spirit of ‘Ubuntu’.

Additional funds generated may be used for PPE’s, improving the health sector and providing additional required equipment to hospitals and clinics (ventilators etc.), and also provide a bonus to all public health care workers (even if it is just R500).

I know you may be concerned that certain individual’s drunk behaviour may result in the use of hospital beds but to curb this we could introduce an interim fine and/or jail time for such reckless behaviour for the duration of the pandemic.

For treasury to access the funds at a quicker pace, I would suggest distributors and manufacturers pay the tax directly (cash on delivery system) so the cost will eventually trickle down to the consumer. By the time stock leaves the distributor/manufacturer the ‘COVID19 Vaccine Tax’ would already be paid to the treasury and we can issue certificates for the amount received accordingly. To avoid corruption, this concept should be administered at the highest possible level. Using the above method allows us to not only save lives but livelihoods.

I hope the above serves you well.

Kind Regards,
Valery Pillay