Thirty-seven suspects who were arrested while attempting to smuggle 76 cardboard crates of export quality Remmington Gold cigarettes out of the country into South Africa appeared before Beitbridge Resident Magistrate Mr Takudzwa Gwazemba last week.
The accused were arrested last Wednesday by members of the
national security task force, which is implementing an operation against cross
border crimes.
Prosecuting, Mr Ronald Mugwagwa said the security men at
Point 40 near Vhembe Game Park, received information that there was smuggling
activities at an illegal crossing point near the same area.
They then reacted and intercepted the 37 accused persons
who were crossing into South Africa carrying the cardboard crates boxes of
Remington Gold cigarettes.
The boxes were neatly packed in sacks that had been
improvised as satchels.
Mr Mugwagwa said the group was subsequently arrested and
the contraband was taken to the Zimbabwe Revenue Authority (ZIMRA) for
valuation.
The smuggling of cigarettes from Zimbabwe into South Africa
through illegal crossing points along the Limpopo River relatively increased at
the beginning of April last year prompting security from both countries to
intensify anti-smuggling initiatives.
The market exists because of the high duties that South
Africa charges, so it is possible to make a profit even buying cigarettes at
retail prices in Zimbabwe.
It is understood that 30 percent of cigarettes in South
Africa are from Zimbabwe with brands including Pacific, Remington gold, Mega,
Dullahs, Branson, and Sevilles.
South Africa’s tax watchdog, Tax Justice SA (TJSA) has
accused cigarettes manufacturers in the neighbouring country of paying lip
service to tax laws following the surge in tobacco smuggling.
The organisation’s founder Mr Yusuf Abramjee said many
shops in the neighbouring country were full of these illicit cigarettes, which
rob South Africa of billions of rand in desperately needed taxes.
He said investigations by market researchers IPSOS revealed
that 85 percent of GLTC-owned brands bought in the survey were sold below the
minimum collectible tax rate of R21.60 per pack.
Mr Abramjee said it had also been established that every
single pack of Remington Gold purchased in the survey was below the minimum and
that some were sold for as little as R10.
“Most of these cigarettes are being brought in by foot, in
commercial trucks, buses, and tankers, and the police, the army, and customs
officials have been intercepting the smugglers at the border or various areas
within the country,” he said.
“The smugglers are bribing officials to bring in their
loads and this is bad for the local industry. We have been engaging SARS and we
are happy that they are acting on plugging the loopholes, but still want to see
them do more”.
Mr Abramjee also appealed to the South African government
to carry out an inquiry into the smuggling and trade of illicit cigarettes.
“We need such an inquiry which will then inform the
formulation of a long-term solution to this vice,” he added.
Investigations by the Herald reveal that the demand for
Zimbabwe’s tobacco and related products by other countries has seen the
establishment of well-orchestrated syndicates who facilitate the illegal trade.
While Zimbabwe exports tobacco to South Africa legally, not
many manufacturerd cigarettes are exported because of the high duties. The
smuggled cigarettes can easily undercut the South Africa prices if duty is not
paid.
Statistics from the South African Revenue Services show
that a total of 82 689 043kg of tobacco were imported from Zimbabwe between
January 2010 until March 2015.
These include imports of Cigars, Cheroots, Cigarillos, and
Cigarettes, of Tobacco or of Tobacco Substitutes.
Cigarettes imported from Zimbabwe pay duty at a rate of
R6.21 per 10 cigarettes. Herald
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