Johannesburg – Lives are in danger and legitimate businesses are at risk from the rampant illicit trade in non-compliant electrical plugs, cables, and fittings, Tax Justice SA (TJSA) has revealed.
A recent TJSA survey of South Africa’s leading electro-technical companies finds that an overwhelming four in five (78%) of industry leaders are “very concerned” about the growing influx of non-compliant goods, which are flooding the retail market unchecked.
This illicit trade involves massive tax evasion and robs law-abiding businesses of billions of rands in honest income, they say.
TJSA founder Yusuf Abramjee said Monday, (21 October 2024),: “The booming trade in non-compliant electro-technical products is not just a matter of lost revenue – it’s a matter of life and death.”
Key findings from the survey point to the widespread circulation of dangerous products such as electrical cables, sockets, switches, lighting products, and circuit breakers.
“‘These items, often poorly manufactured and untested, pose significant threats to homes, businesses, and public infrastructure,” Abramjee said.
“The resulting hazards, including electrical failures and fires, put thousands of South Africans at risk daily.
“Rogue suppliers are exploiting loopholes to flout safety standards and dodge import duties.”
Abramjee added: “Their deadly products are widely available, particularly through online sites – and the authorities who are meant to protect us are doing little about it.
“We cannot afford to wait any longer.
“The government and enforcement agencies like the National Regulator for Compulsory Specifications (NRCS) must act swiftly to crack down on this illicit trade and protect consumers.”
According to the survey, more than 77% of respondents believe that current regulations are failing to stem the tide of non-compliant goods.
Despite existing laws, the enforcement remains alarmingly ineffective.
Illicit traders exploit regulatory loopholes, while legitimate businesses suffer the consequences of unfair competition.
The survey highlights a dire need for a comprehensive crackdown on illegal imports and non-compliant products.
TJSA called on the NRCS and other relevant authorities to:
- Strengthen Enforcement
- Increase Penalties
- Enhance Consumer Education
- Implement Rigorous Product Testing
“These steps are critical to curbing the illegal trade and protecting both South African consumers and businesses from its harmful impact,” Abramjee said.
“Illicit trade is an attack on our safety, our economy and our future.
“We call on the government to take urgent action to enforce existing laws and bring any transgressors to justice.”
