Tax Justice SA calls for inquiry into tide of illicit tobacco

Stop Skyf Capture – illicit cigarette trade is robbing SA of millions, says TJSA founder Yusuf Abramjee. Picture: Supplied.

Stop Skyf Capture – illicit cigarette trade is robbing SA of millions, says TJSA founder Yusuf Abramjee. Picture: Supplied.

Published Feb 11, 2023

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Johannesburg - Tax Justice SA (TJSA) is calling for an urgent official inquiry into evidence of collusion between enforcement officers and smuggling networks who are flooding South Africa with tax-evading cigarettes.

“Police reports show that tobacco traffickers have stepped up their operations running illicit cigarettes from Zimbabwe across our porous borders,” TJSA founder Yusuf Abramjee said.

Tens of millions of smuggled Remington Gold cigarettes have been seized in the last few weeks, but these are just the tip of the iceberg.

“Some illegal shipments have reportedly been escorted to their destination by alleged corrupt cops, while others have somehow been cleared at customs checks at the Beitbridge border.

“It means shops throughout the country are now openly selling these illicit cigarettes, which are robbing the fiscus of more than R50 million daily. We need an urgent official inquiry into this scourge – and the high-level collusion seemingly enabling it – before organised crime gangs completely take over South Africa’s cigarette market.”

Speaking to the Saturday Star, the SAPS Limpopo province head spokesperson, Brigadier Motlafela Mojapelo, said that the police would not hesitate to arrest their own if caught colluding with cigarette smugglers.

“With the recent arrests we are sending out a clear message to our members that if they do that they will have a problem, they will get arrested.”

These arrests related to six police officers attached to the Tshamutumbu Police Station in the Vhembe district, in Limpopo, who allegedly created a safe passage for cigarette smugglers entering the country. In return, they were allegedly given bribes. They were arrested in November last year.

“This is a concern, but what I can say is that we act on any information provided regarding our members’ involvement in any act of criminality. We don't hesitate, regardless of the rank of that member,” he added.

This week, seven suspects appeared in court in Limpopo on charges relating to two separate intercepted shipments of illicit cigarettes worth more than R30 million. On the same day, 11 other suspects were arrested after a high-speed chase between police and 10 cars loaded with illicit Remington Gold cigarettes.

“Millions of smuggled Remington Gold cigarettes are finding their way into South Africa after being packed into trucks and tankers in Zimbabwe,” said Abramjee.

“SARS should investigate if the brand’s owner, GLTC Zimbabwe, is paying Zimbabwean taxes on these. They do not contain the SA Diamond stamp, so they cannot be legally exported to SA. Where is the tax revenue on these cigarettes going while South Africans suffer?”

TJSA delivered its “REAL State of the Nation” this week, calling out the crime networks that are looting the state of funds needed for vital services.

It has launched a new offensive called “Stop Skyf Capture” to fight the menace of illicit cigarettes.

“Illicit trade is bringing our country to its knees and criminal cigarette barons are leading the assault,” Abramjee said.

“These mega-rich kingpins and their enablers must be rooted out and brought to justice and the billions of rand they have stolen must be returned to the South African people, to whom it rightfully belongs.”

The Saturday Star