Tax Justice SA urges criminal prosecutions in response to cigarette manufacturers’ licence suspensions
Tax Justice South Africa is calling for immediate criminal prosecutions following the South African Revenue Service's suspension of licences for three cigarette manufacturers.
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Tax Justice South Africa (TJSA) has urged the government to follow through with criminal prosecutions after the South African Revenue Service (SARS) suspended the licences of three cigarette manufacturers in a major step against the illicit tobacco trade.
The move was announced by Finance Minister Enoch Godongwana during his Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.
While Godongwana did not name the manufacturers, he said the government is intensifying efforts to curb illicit trade that costs South Africa an estimated R28 billion a year in lost tobacco excise revenue.
According to Godongwana, Cabinet has approved a plan for all law enforcement and regulatory agencies to collaborate more closely in tackling the criminal networks behind illicit trade.
“This is good news,” said TJSA founder Yusuf Abramjee in response to the announcement.
“The government needs to go out in full force and stop the illicit trade that is robbing our nation of revenue and destroying legitimate businesses.Revoking these licences is a step in the right direction, but it should be supported by criminal charges and visible action.”
Abramjee added that there needed to be collaboration between law enforcement authorities to produce real results.
“That means the kingpins involved in the illicit trade must be arrested, charged, and put behind bars. And the money they’ve stolen must be returned to the South African people, to whom it belongs.”
TJSA said it has long warned about the economic damage caused by the illicit tobacco industry, which undermines lawful businesses and drains state coffers of billions in unpaid taxes. The organisation has repeatedly called for decisive enforcement against manufacturers and distributors operating outside the law.
Abramjee also referenced the Al Jazeera “Gold Mafia” investigation, which aired nearly three years ago, alleging large-scale money laundering and smuggling operations linked to tobacco and gold trading.
“Many of those implicated in multi-billion-rand money laundering, smuggling, and other illegal activities are still enjoying the fortunes they allegedly made through those crimes,” he said. “If the government is serious about restoring trust and cleaning up our economy, criminals should face justice.”
He added that visible prosecutions and asset recoveries would serve to demonstrate the government’s commitment to accountability and send a strong message to organised crime networks operating in the country’s illicit trade markets.