Tobacco consumption is hazardous at all levels. In South Africa, cigarette smoking is a major health problem accounting for thousands of premature deaths each year, including those that are exposed to second hand smoke. In recognition of these consequences, tobacco consumption, particularly cigarette smoking has received a significant amount of attention since the democratic transition in 1994. With the policy change, there has been a significant decline in tobacco consumption in the last two decades. A policy that targets increases the minimum age below which individuals cannot purchase cigarettes, since majority of smokers initiates smoking at a very young age (below 24 years), an age group characterised by high degree of peer influence. Empirically motivated research on tobacco consumption in South Africa have shown a close adherence to determining the effect of tobacco excise taxes on individual smoking behaviour, ignoring the effects of peer network (indirect effects of the policies).