Latest news with #R96
IOL News
6 days ago
- Business
- IOL News
Minimum Pricing on Alcohol: A risky shortcut South Africa can't afford
The proposed policy to introduce Minimum Unit Pricing (MUP) on alcohol - setting a legal floor price per unit of alcohol - is being presented as a solution. By Charlene Louw South Africa is facing a real challenge in addressing the consequences of harmful drinking. We see it in our hospitals, on our roads, and in our communities. It's a problem that demands decisive action - but not desperate shortcuts. The proposed policy to introduce Minimum Unit Pricing (MUP) on alcohol - setting a legal floor price per unit of alcohol - is being presented as a solution. On the surface, it sounds promising. Raise the price, and you'll reduce harmful consumption. But in practice, and especially in the South African context, the consequences are far more damaging than the theory suggests. As the Beer Association of South Africa (BASA), we support the intention to reduce alcohol-related harm. But we strongly caution against using MUP as a policy tool. Here's why. A policy that will hurt the poor Minimum pricing does not impact all consumers equally. It hits the lowest-income drinkers the hardest - not just the heaviest drinkers. Instead of reducing consumption, many will turn to unregulated, illegal alcohol, which is often cheaper and far more dangerous. We are not theorising - this is already happening across the country. Fuel for an already raging fire The illicit alcohol market in South Africa is already a multi-billion-rand industry, siphoning off government revenue, undermining law enforcement, and endangering public health. A poorly designed minimum pricing policy will act as fuel for this fire, pushing more consumers into the hands of criminal syndicates. The economic fallout The beer industry supports close to a quarter million jobs and contributes more than R96 billion to the national economy. The impact of MUP on small businesses, SMME brewers, and township retailers could be catastrophic. It risks formal sector shrinkage and will undermine job creation efforts in precisely the communities that need it most. What we should be doing instead We urge government to pivot to policies that work: Crack down on illegal alcohol production and sales Expand public awareness campaigns and responsible consumption messaging Invest in treatment and rehabilitation infrastructure Partner with the industry on education and community-based harm reduction programmes Let's not take shortcuts. Let's be smart, collaborative, and deeply intentional in how we build a healthier society - one where responsible enjoyment of beer coexists with a culture of safety and care.
IOL News
05-08-2025
- Business
- IOL News
High Court confirms preservation order against Amalgamated Tobacco Manufacturing in tax evasion case
TAX Justice South Africa (TJSA) in a statement on Tuesday welcomed a High Court judgment confirming a preservation order against Amalgamated Tobacco Manufacturing and 19 other entities, who are accused of a sophisticated multi-million-rand tax evasion racket. . Image: Courtney Africa/Independent Newspapers TAX Justice South Africa (TJSA) in a statement on Tuesday welcomed a High Court judgment confirming a preservation order against Amalgamated Tobacco Manufacturing and 19 other entities, who are accused of a sophisticated multi-million-rand tax evasion racket. The Fair-Trade Independent Tobacco Association (FITA), who represents independent cigarette manufacturers, respects the judicial process and the role of the courts in upholding the rule of law. In the judgment, the High Court of South Africa, KwaZulu-Natal Local Division, Durban ruled that the provisional preservation order granted on February 27, 2025 against the ninth and tenth respondents (South African Revenue Service v Kajee and Others) is confirmed. TJSA said that the KwaZulu-Natal High Court has dismissed challenges to the South African Revenue Service's preservation order, allowing Sars to continue securing assets while investigating more than R96 million in suspicious financial transfers involving the Pietermaritzburg-based cigarette maker. TJSA founder Yusuf Abramjee said that this case demonstrates exactly why Sars needs robust investigative powers and why the illicit tobacco trade continues to devastate our fiscus. 'When a court finds a tobacco manufacturer has a case to answer over millions in under-declared income, it confirms what we've been saying for years – the industry is riddled with tax dodgers who are bleeding our country dry.' TJSA said that Amalgamated Tobacco – as well as local industry body the Fair-Trade Independent Tobacco Association (FITA) – is fighting Sars's legal right to install surveillance cameras in cigarette factories. Abramjee said that while legitimate manufacturers should welcome transparency measures, those opposing surveillance systems clearly have something to conceal. 'If the allegations in this case are true, then it will vindicate Sars's approach to enhance monitoring of the tobacco sector. The illicit cigarette trade now commands more than 70% of the South African cigarette market, robbing the country of approximately R30 billion in tax revenue annually. This massive revenue loss undermines public health initiatives, education funding, and essential government services.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Abramjee added that this R96 million case is just the tip of the iceberg. 'The Government must ensure that Sars has the resources to expand these investigations to other major players in the illicit tobacco trade.' FITA chairperson Sinenhlanhla Mnguni said that they note the recent judgment delivered by the High Court of South Africa, KwaZulu-Natal Local Division, Durban, in the matter of Commissioner for South African Revenue Service v Kajee and Others (Case No. D1514/2025). 'FITA respects the judicial process and the role of the courts in upholding the rule of law. FITA has consistently and unequivocally supported all legitimate efforts by the state, regulatory authorities, and industry stakeholders to combat smuggling and the illicit trade in cigarettes. These illicit activities undermine the integrity of the market, deprive the fiscus of vital revenue, and harm legitimate businesses across the sector.' Mnguni added that they commend any actions that promote transparency, accountability, and fair competition, and stand ready to collaborate with Sars and other entities to eradicate these threats. 'Compliance in the tobacco industry must be approached holistically, taking into account the full spectrum of challenges and dynamics at play. It is concerning when enforcement appears to be selectively focused on isolated aspects, potentially overlooking broader systemic issues that contribute to non-compliance. This narrow lens risks distorting the true picture of the industry, which is far more complex.' Mnguni said that they urge all stakeholders, including Sars, to adopt a comprehensive and equitable strategy that addresses root causes such as economic disparities, regulatory gaps, and unfair trade practices affecting smaller, independent players. 'Only through such a balanced approach can we achieve sustainable compliance and a level playing field for all participants in the South African tobacco market.' Professor Corné van Walbeek, the director of the Research Unit on the Economics of Excisable Products, from the University of Cape, said that illicit trade in South Africa is a very serious matter. 'The illicit trade in cigarettes accounts for more than 50% of the total market. A large proportion of illicit cigarettes in South Africa are under-declared local production. The fact that Amalgamated Tobacco Manufacturing Company has been charged for tax evasion by Sars is long overdue.' BUSINESS REPORT TAX Justice South Africa (TJSA) in a statement on Tuesday welcomed a High Court judgment confirming a preservation order against Amalgamated Tobacco Manufacturing and 19 other entities, who are accused of a sophisticated multi-million-rand tax evasion racket. . Image: Courtney Africa/Independent Newspapers TAX Justice South Africa (TJSA) in a statement on Tuesday welcomed a High Court judgment confirming a preservation order against Amalgamated Tobacco Manufacturing and 19 other entities, who are accused of a sophisticated multi-million-rand tax evasion racket. . Image: Courtney Africa/Independent Newspapers
The South African
25-05-2025
- Entertainment
- The South African
Chris Brown released on R120 million bail in UK assault case
US R&B star Chris Brown has been released on bail by a UK court after being charged with a serious assault. He was released with a hefty R120 million (approximately £5 million) guarantee set as his bail condition. This development clears the way for the 36-year-old singer to continue his international tour, which kicks off on 8 June in Amsterdam. Chris Brown was detained in Manchester earlier this month following allegations that he violently attacked music producer Abe Diaw. The incident happened at the Tape nightclub in London back in February 2023, according to LA Times. Prosecutors described the incident as an unprovoked assault where Brown allegedly struck Diaw multiple times with a bottle. The singer then pursued, punched, and kicked him while he lay injured. The severity of the charges led to Brown initially being denied bail last week. The judge citing the grave nature of the allegations. However, after reapplying, Brown was granted bail on 21 May. This was contingent on an immediate payment of £4 million (around R96 million) and an additional £1 million (R24 million) within seven days. This totalled everything to a R120 million guarantee. The court also ordered Brown to surrender his passport except for travel related to his tour. They also imposed strict bail conditions, including residing at a court-approved address. The singer also has to avoid contact with the alleged victim. He should also stay away from the nightclub where the assault occurred. As part of his bail, Brown is allowed to proceed with his 'Bzy Bowl' world tour, which starts in Amsterdam. This includes UK dates from 15 June through early July. Failure to return for these UK performances would result in the forfeiture of the R120 million bail. His next court appearance is scheduled for 20 June, coinciding with his tour schedule. The case adds to Brown's tumultuous legal history, which notably includes a felony conviction for assaulting Rihanna in 2009. The singer, known for hits like Loyal , Run It , and Under the Influence , faces a serious challenge balancing his legal battles with his career commitments. Chris Brown himself took to social media shortly after his release, posting: 'From the cage to the stage, Breezy Bowl is on.' This showed his determination to press ahead despite the legal storm. This high-profile case continues to unfold, capturing global attention as Brown navigates the intersection of fame, legal accountability, and live performance. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
22-04-2025
- Business
- The South African
2025 SASSA grant review: HOW the agency reclaims money
Social welfare organisations predict we'll see an increase in 2025 SASSA grant review proceedings for 'core' beneficiaries. There are several factors at play for this, but the biggest one is managing strain on the National Treasury's social welfare budget. As many of you know, a 2025 SASSA grant review can be initiated if the agency has reason to believe your circumstances have changed/improved since you were approved for a grant. You may have misrepresented your income in your initial application, or you may have an undeclared revenue stream that puts you above the qualifying income amount. Either way, the South African Social Security Agency has the right to request a 2025 SASSA grant review. However, authorities must give you three-months' notice in writing beforehand it can do so. Primarily, the agency will check on your income and asset eligibility. And if it finds you are over the limit, it does have the right to 'reclaim ill-gotten government funds' for the period in question … To keep the number of Old-Age SASSA beneficiaries manageable, the National Treasury enforces strict tests through the Social Pension (SOCPEN) system. Therefore, anyone with a private pension, savings, personal assets and income exceeding these limits will face a 2025 SASSA grant review: R8 070 per month ( R96 840 per year) income if single. per month ( per year) income if single. R16 140 per month ( R193 680 per year) income if married. per month ( per year) income if married. Total assets of R1 372 800 if single. if single. Total assets of R2 745 600 if married. For the country's 13-million SASSA Child Support beneficiaries, applicant finances must show you earn less than: R8 800 per month if married ( R105 600 annually). per month if married ( annually). R4 400 per month if single (R52 800 annually). As a result, SASSA is within its rights to demand that money be repaid for the period of time that your income/assets exceeded the qualifying amount. Don't forget, you sign an agreement when you become a grant beneficiary that you will inform SASSA if/when your income increases beyond the qualifying amount. Cost of living is increasing but lying to SASSA is illegal. SASSA will demand that you repay the monies you received 'in error.' However, if you think you have a case, you can appeal against SASSA's decision through the Department of Social Development (DSD) HERE. You have 90 days to appeal their decision. SASSA will pass it along to the Independent Tribunal for Social Assistance Appeals (ITSAA) for final adjudication. If your appeal is overturned, SASSA will insist you repay all 'ill-gotten funds' from the time period in question. An alternative path to resolution is to contact social welfare organisation, Black Sash. Their head office is based in Mowbray, Cape Town and they have experience resolving grant review problems: +27 21 686 6952 072 6633 739 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
