Johannesburg – TAX Justice SA (TJSA) on Tuesday said it welcomes “a vital legal breakthrough” against tobacco barons who are “stealing billions of rand from South Africa”.
TJSA urged authorities to “now enforce the law to prevent this industrial-scale looting”. Several cigarette manufacturers have failed in their urgent bid to interdict the SA Revenue Service (SARS) against installing CCTV cameras at their warehouses.
TJSA said these companies, including Carnilinx, which it said was “owned by self-confessed tobacco smuggler Adriano Mazzotti” have to heed laws enabling SARS to monitor the true volume of cigarettes they produce.
The tax compliance campaign revealed that every day about R250 million was being looted from South Africa by the illicit economy.
TJSA founder Yusuf Abramjee said: “This is a vital breakthrough against the illicit tobacco barons who are robbing Mzansi of over R27 billion a year by flooding the market with tax-evading cigarettes.
“For too long, these criminals have been able to flout the laws and hide their industrial-scale looting from SARS.
“Now authorities must ensure regulations are properly enforced to halt the crippling theft of vital revenue that should be building a better South Africa for all.”
The legal challenge against the CCTV rules has been led by the Fair-Trade Independent Tobacco Association (FITA), which represents the local makers of “cheapie” cigarette brands.
“The Gold Mafia investigation has shown that South Africa’s illicit cigarette trade is a key component of money laundering and other organised crime,” Abramjee said.
“The kingpins are brazenly siphoning billions of rand in dirty money to offshore havens by utilising high-level accomplices and exploiting weaknesses in our enforcement agencies, which were hollowed out by years of State Capture.
“To rebuild our country, our investigators and prosecutors must be properly equipped to implement the rule of law.”
Abramjee said the latest ruling by the Gauteng High Court goes some way toward doing that.
“SARS must follow up with vigour, immediately install CCTV at all tobacco factories and cancel the licences and seize the products of companies that refuse to comply,” Abramjee said.
“Instead of hiding behind legal jargon, FITA must be forced to account why it’s trying to tie up our authorities in costly court actions and explain once and for all what it’s ultimately trying to hide.”
