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The Citizen
a day ago
- Business
- The Citizen
Fake alcohol floods shelves as danger rises
Cheap fake alcohol is luring buyers and flooding shops. It's deadly, illegal, and costing South Africa R16.5 billion in lost excise taxes. Crime is enough to turn anyone to drink… but even trying to drown your sorrows you won't be safe, because 18% of the booze in South Africa is counterfeit. And, you're not just going to find it in holein-the-wall shebeens or backstreet taverns – some of it is also seeping into mainstream liquor outlets, according to researchers Euromonitor International, in partnership with the Drinks Federation SA. They revealed that the fake alcohol trade is worth more than R25 billion a year. The main victims are established brands, whose labelling is copied and placed on to containers of counterfeit drinks. The scale of the crime means the SA Revenue Service loses out on R16.5 billion in excise duty. ALSO READ: How you could be drinking counterfeit alcohol without knowing They say the bootleg business has increased 55% over the past seven years while the loss to the government has increased by 157%. One of the main attractions of the ersatz hooch is that it can be between 37% and 70% cheaper. South Africans hunt bargains like that all the time – but there are dangers. Not only could the hangover be greater from booze without quality control, but it might kill you.
TimesLIVE
23-05-2025
- Business
- TimesLIVE
Government spending plans hinge on tax agency hitting target, finance minister says
SA will need to slash spending if its tax agency does not meet its revenue collection target this year, finance minister Enoch Godongwana says, as the government focuses on keeping rising debt under control. Godongwana was speaking after making only minor adjustments to the government's spending plans and deficit projections in a third budget presented to lawmakers on Wednesday. His two previous attempts were scuppered by disagreements within the ruling coalition, chiefly over since abandoned plans to raise value added tax, that had rattled investors' confidence. Speaking to Reuters in an online interview on Thursday, Godongwana said the government did not expect to overshoot on spending. He said if the SA Revenue Service raises more than its target of R1.9-trillion in the fiscal year that ends in March 2026, there will be no need for R20bn in additional taxes pencilled in for the 2026/27 fiscal year. However, if that target is not met, "we will have to cut expenditure substantially", he said. Godongwana said the higher debt peak of 77.4% of gross domestic product that featured in his new budget reflected weaker economic growth forecasts rather than extra borrowing. Debt would peak this year, he maintained, saying doubters predicting further slippage were wrong. Financial officials will decide in July, after the SA Reserve Bank signs off its accounts, whether to draw on gains in its Gold and Foreign Exchange Contingency Reserve Account, which it started tapping last year to limit borrowing. Godongwana said friction within the coalition government over the budget had, meanwhile, eased. He said: "That noise has been exhausted. Everyone understands we have to get on with the work."
Eyewitness News
22-05-2025
- Business
- Eyewitness News
SARS ready to take responsibility of filling revenue gap in national budget
JOHANNESBURG – The South African Revenue Service (SARS) has indicated it's ready to take up the responsibility of filling in the revenue gap in the national budget. On Wednesday, Finance Minister Enoch Godongwana presented the budget but didn't include an increase to value-added tax (VAT). READ: FULL SPEECH: The 2025 Budget Speech - 21 May 2025 In his previous two failed budgets, Godongwana was adamant on raising VAT, saying it was the only way the government could continue to fund some of its critical programmes. Godongwana has shifted some of that revenue-raising responsibility to SARS, saying it will be able to raise an additional R20 to R50 billion a year due to increased staff capacity. SARS commissioner Edward Kieswetter said, 'We don't think of it as a lot of pressure, we think of it as a greater reliance on the SA Revenue Service in terms of its role to strengthen the fiscal integrity of South Africa.' Kieswetter said the revenue service has an uncollected tax bill of R500 billion. 'That includes penalties, interests, debt that will never be collected because it is not economical, some taxpayers are no longer in business, so we are saying even if through a focused effort we can collect a third of that, and it will be R150 billion or more.' ALSO READ: Budget 3.0: Keeping VAT at 15% limits funding for new initiatives, says Godongwana
Daily Maverick
21-05-2025
- Business
- Daily Maverick
Tax tightrope — what the Budget means for your wallet
Finance Minister Enoch Godongwana's latest (and hopefully final) Budget speech introduced no major tax hikes. Kicking the can down the road, R20-billion in additional tax measures are set to be served up in the 2026 budget, unless the SA Revenue Service can bring in extra cash. General fuel levies are also set to increase on 4 June 2025.
IOL News
07-05-2025
- Business
- IOL News
Lucky Montana fights back against SARS's asset attachment claim
Former Prasa CEO and Member of Parliament Lucky Montana challenges SARS over R46 million tax claim. Image: David Ritchie/ Former Prasa CEO Lucky Montana has publicly challenged the SA Revenue Service's (SARS) application to attach his assets, claiming the tax claim against him is unfounded and politically motivated. The dispute revolves around an R46 million tax assessment SARS sought to recover from Montana. The tax authority's application, filed in the Pretoria High Court, also seeks to declare Montana insolvent. SARS alleges that Montana owes this amount in taxes, penalties, and interest from assessments dating back over a decade. The case is currently before the court, and the proceedings are expected to shed light on the validity of SARS's claims. Montana, the former CEO of the Passenger Rail Agency of SA (Prasa), vehemently denies owing money to SARS. In a detailed statement issued before Tuesday's court hearing, Montana described the case as a 'personal attack' aimed at humiliating him. 'I don't owe SARS,' Montana declared firmly. 'This matter is aimed at humiliating me and tarnishing my reputation just before the court hearing.' 'The truth is, this case goes back to 2018. The papers in this specific leg of the SARS application are from May 2023, but I want it to be clear—I owe no outstanding amounts to SARS, and I will not be paying SARS any money.' Montana recounts that in 2018, SARS initially contacted him regarding an outstanding tax amount of R1.6 million, which he agreed to pay. 'I informed SARS that I was in the middle of a property sale and would settle the amount once the transfer was complete. I later paid R1.49 million from the proceeds of that sale,' he said. Following this, he said SARS conducted a decade-long retrospective assessment (2009-2019), claiming Montana had undeclared income of R23 million. 'SARS claimed I owed roughly R8 million, but I have made it clear I do not owe them this,' Montana emphasised. 'I have objected to the assessment and believe their calculations are incorrect. I have evidence and legal advice to support my position.' Montana criticised SARS for 'vindictive' actions, including raising taxes on six vehicles financed through hire purchase, which he argues was inconsistent with tax principles. 'SARS said the funds to settle these vehicles did not originate from my account. But standard practice is that dealership settlements are routine, and my legal advisors say SARS's treatment of this is incorrect,' he stated. 'Some of my vehicles were financed and sold at a loss, which should not result in additional tax liabilities.' He also pointed out that SARS targeted him during periods when he was unemployed. 'I understand my tax obligations, and I pay taxes when legally required to,' he declared. 'But this case is not about tax; it's about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.' He firmly stated, 'I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.' Furthermore, he emphasised his commitment to lawful compliance. 'I understand my tax obligations, and I pay taxes when legally required to,' he declared. 'But this case is not about tax; it's about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.' He firmly stated, 'I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.' Cape Argus
