Tuesday 11 March 2025 – HIKES in ‘sin taxes’ in tomorrow’s Budget will further fuel the criminal networks already stealing R100 billion a year from South Africa through illicit trade, Tax Justice SA (TJSA) warns today.
TJSA founder Yusuf Abramjee says: “Honest, hard-working South Africans are sick and tired of being penalised while crooks are let off scot-free to live in luxury.
“Finance Minister Enoch Godongwana must realise that hiking excise duties on alcohol and tobacco will only strengthen the hands of criminals who are robbing the nation blind.”
Illicit cigarettes alone deprive the fiscus of R27 billion in tax revenue every year – nearly as much as a one percentage point increase in the VAT rate. The illicit alcohol trade robs the country of another R11 billion annually. It’s a similar story in other sectors ranging from electrical products to pharmaceuticals.
“These criminals are bleeding the country dry while legitimate businesses and law-abiding citizens suffer,” says Abramjee. “The government must focus on enforcing existing laws instead of raising taxes that only push more consumers towards illicit products.”
TJSA calls on Minister Godongwana to ensure that the South African Revenue Service (SARS) and the National Prosecuting Authority (NPA) are properly equipped and empowered to crack down on illicit trade.
“We need real action, not empty promises. SARS and the NPA must shut down illegal manufacturers, recoup the lost billions and ensure that all businesses pay their fair share to build a better South Africa for all,” Abramjee adds.
TJSA urges the government to prioritise tax justice over punitive tax hikes that will only drive more consumers into the hands of criminals.
“Since the ‘Gold Mafia’ exposé in 2023, not a single arrest has been made in South Africa,” says Abramjee. “The implicated individuals are still operating with impunity. They are cashing in big time and authorities must move at speed to lock them up. The delay in prosecution will only add to speculation that they are being protected.
“It’s been open season for the illicit trade kingpins for too long. Now it’s time to stop rewarding crime and start protecting the honest citizens who keep this country running.”
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