Court ruling should ‘smoke out illicit cigarette kingpins’ – Abramjee

Tax Justice South Africa (TJSA) founder Yusuf Abramjee said the South African Revenue Service (Sars) legal battle to force cigarette manufacturers to install CCTV cameras at their warehouses should “smoke out illicit cigarette kingpins.”

This comes after Gauteng High Court in December dismissed an urgent application by the Fair-Trade Independent Tobacco Association (FITA) and numerous other tobacco manufacturers who refused to comply with a Sars ruling to install CCTV cameras.

CCTV cameras

Abramjee said TJSA welcomed the ruling.

“Several cigarette manufacturers have failed in their urgent bid to interdict Sars against installing CCTV cameras at their warehouses. Now these companies – including Carnilinx, which is owned by self-confessed tobacco smuggler Adriano Mazzotti – should have to heed laws enabling Sars to monitor the true volume of cigarettes being produced.

 “This is a vital breakthrough against the illicit tobacco barons who are robbing Mzansi of more than R27 billion a year by flooding the market with tax-evading cigarettes,” Abramjee said.

ALSO READ: Foreign nationals nabbed with R1.5m worth of illicit cigarettes in Limpopo

Flouting laws

Abramjee added that “for too long criminals have been able to flout the laws and hide their industrial-scale looting from Sars”.

“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.”

 “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.”

Rebuilding SA

Abramjee said to rebuild South Africa, investigators and prosecutors must be properly equipped to implement the rule of law.

“This latest ruling by the Gauteng High Court goes some way towards 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.

ALSO READ: R7 for a pack cigarettes? Authorities losing fight against illegal cigarettes