Wednesday 02 April 2025 – The taxman’s recovery of R30 billion from syndicated crime over the past year underscores both a significant victory and a stark warning: South Africa’s illicit trade crisis remains a massive drain on public funds, robbing the nation of vital billions, Tax Justice SA (TJSA) cautions today.
These figures, unveiled in the South African Revenue Service’s (SARS) annual revenue announcement on Tuesday, revealed that the R30 billion was recovered through just 198 complex investigations into syndicated crime.
TJSA welcomes these enforcement successes while emphasising that they are likely to represent only a fraction of the revenue lost to illicit trade activities.
“The recovery of R30 billion from syndicated crime through fewer than 200 investigations is commendable, but also deeply concerning as it reveals just how much is being stolen from South African citizens on a daily basis through illicit trade,” said TJSA founder Yusuf Abramjee.
“These figures should serve as a wake-up call about the tens of billions still being diverted from essential public services into criminal hands.”
TJSA strongly supports the allocation of an additional R7.5 billion to SARS, particularly Commissioner Edward Kieswetter’s commitment to “strengthen efforts to deal firmly with the illicit economy, trade-based money laundering and illicit financial flows including illicit cigarettes, second-hand gold, crypto currency, trade mispricing and undervaluation fraud”.
“Despite SARS’ enhanced enforcement capabilities, criminals are looting the nation on an industrial scale in virtually every sector, from cigarettes to electrical goods, and from pharmaceuticals to alcohol,” Abramjee said. “The kingpins are growing rich by stealing the funds that are meant to build better schools, hospitals and houses.
“The billions recovered by SARS demonstrate the enormous scale of what remains to be done. We cannot allow criminal syndicates to continue operating with impunity while honest businesses struggle and public services remain underfunded.
“Every rand recovered from criminal networks is a rand that can be invested in our communities instead of enriching smugglers and tax evaders. We must intensify efforts to combat illicit trade if we are to build a fair economy that works for all South Africans.”