Report shows cigarette cartels in Zimbabwe are a tax threat in SA too

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South Africa Headlines News

A recently released report on powerful cartels in Zimbabwe has exposed how cigarette companies are illegally infiltrating the South African market, while dodging the local taxman at the same time.

Report on Cartel Power Dynamics in Zimbabwe

The report alleges that the Pacific Cigarette Company, which is owned by Adam Molai, former Zimbabwean president Robert Mugabe’s nephew-in- law, whose cigarettes are smuggled into the country via rail, road and air, along with Gold Leaf Tobacco Zimbabwe, which is owned by the Rudland family, who also happen to own a trucking company and an airline, FastJet, are some of the main players in the cigarette space.

“A clear majority of the actors whose responsibility it is to address cartel behaviour have become financially dependent on, and complicit in the activities of the cartels. Anton Fisher, a spokesperson for Sars did not comment on the specific questions and would only say in an e-mailed response on Tuesday morning: “In terms of Chapter Six of the Tax Administration Act, Sars is not permitted to discuss or disclose confidential taxpayer information”.

“The tobacco industry in large has over the years been vociferous about the exponential increase in illicit tobacco and related products emanating from Zimbabwe in particular, which has been highlighted in the report, and which unlawful practice has been growing at an alarming rate over the last few years, and particularly following the lifting of the cigarette sales ban in South Africa during the lockdown period in August 2020.

“This issue needs urgent addressing as we are seeing a substantial amount of cigarette brands from all our neighbouring countries, but predominantly Zimbabwe, in the market at present and it is clear that there are many officials who are not doing their jobs.

 

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Zzzzz.. CyrilRamaphosa nilele

Nothing new really

But we all know this, did the government just catch up? You guys are too slow... same applies to counterfeit goods and money laundering and these spaza shops. Try to catch up man...

Why is this news, we could have told you when we first went into lockdown

Julius' landlord is most probably involved...

Abramjee This has been happening for decades.

Abramjee And they use this money to prop up Facist EFF !!! WOW We have STUPID VOTERS !!!!

Abramjee Follow The Money!!!!

The ANC opened the door to this by banning the sale of cigarettes during lockdown. What did they think was going to happen?

The cartels are the ones selling Cigarretes 'Legaly' but y'all not ready for that discussion yet

Hence Tellytubbies wants open borders for their handler to operate freely.

Well Government frankly encouraged and enabled this with the ban during lockdown. Don't cry now when you were warned...😂

DlaminiZuma made all this possible. It is good. Let the ANC feel the pain

Lol there's no surprise there...

Our always say we are xenophobic

NDZ played right into their hands.

tito_mboweni CyrilRamaphosa

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