PRESIDENT Ramaphosa’s promised crackdown on the illicit economy should start with an investigation into the illegal activities of cigarette giant Gold Leaf Tobacco (GLTC) that could be robbing South Africans of millions of rand every day, says @TaxJustice_SA / @CyrilRamaphosa
TJSA revealed on 13 September that GLTC is selling cigarettes via the internet to private individuals in direct breach of the Tobacco Control Act.
“It’s been more than a month and, despite promises of an investigation by FITA (the Fair-Trade Independent Tobacco Alliance), Gold Leaf continue to brazenly break the law.” @TaxJustice_SA
“This week we again bought cigarettes online from Gold Leaf and our single carton was delivered to a residential address. Gold Leaf claim this is an arrangement with a ‘retail trade partner’ but this is just a sham.”
“In a matter of seconds, we were able to register as a so-called ‘partner’ using a bogus identity that was never checked. Even a child below the legal age of 18 could buy in this way and pay cash on delivery.”
“The fees involved suggest that Zimbabwean-owned GLTC is not paying due taxes on its cigarettes.”
“The company delivered the carton (10 packs costing R22.50 each) of RG cigarettes to a private home more than 1,000 kilometres from its factory for a total bill of R225. The courier company that was used advertises a minimum fee of R115 per delivery.”
“The taxes payable on the carton are R203.35 (R174 excise and R29.35 VAT), or R20.33 per pack.”
“If Gold Leaf say they are paying their taxes, they’re effectively claiming they are able to manufacture, test, package and deliver door-to-door anywhere in the country for just R2 a pack.  And still make a profit.”
“That is simply not credible and demands serious investigation by police and SARS officers.”
“Brands made by GLTC, including Voyager, RG, Sharp and Remington Gold, accounted for one in every three cigarettes sold on the black market during the 144-day lockdown sales ban. They sold 29 million cigarettes every day at hugely inflated prices.”
“If Gold Leaf have maintained their market share they are now selling about 800,000 packs a day, on which a minimum tax of more than R16 million is payable.”
“That’s almost R6 billion a year that the Government can’t afford to lose in our struggling economy.”

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More from @Abramjee

21 Jul
THE government’s tobacco ban lies in ruins after a new report destroyed the government’s reasons for the sales prohibition. @TaxJustice_SA @UCT_news @UCT_Research
The latest report by leading experts at the University of Cape Town finds:
*FIVE times as many smokers are now regularly sharing cigarettes than they were before the ban.
* The average price of some brands has risen by a massive 457% during lockdown...
*The number of people buying illegal cigarettes has INCREASED in the last two months.
*Criminal networks are becoming harder to remove the longer the ban continues.
Read 14 tweets
15 Jun
The body of a woman has been found wrapped in a red bag: decomposed- Golden highway near Eldorado Park.#GBV
“On Sunday 14 June 2020 at about 13h00 members of Eldorado Park SAPS received a complaint of a dead body that had been discovered by commuters along Golden Highway next to the BP gerage in Freedom Park.” @SAPoliceService
“Upon their arrival at the scene, SAPS members found a big red bag containing the decomposed body of an unknown Black female believed to be approximately 25 years of age.”
Read 5 tweets

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