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The Fair Trade Independent Tobacco Association (FITA) has distanced itself from Tax Justice South Africa (SA) and criticized its investigation, which revealed that stores across the country were selling cigarettes that evade due taxes.
Tax Justice SA conducted an undercover investigation into the illicit cigarette trade in the country by visiting stores in Cape Town, Durban, Johannesburg and Pretoria.
“We buy cigarettes that cost a third of the legal minimum price. A Red & Black package cost us R7.20. Producer Afroberg, a member of FITA, must pay excise duty of 17.40 rand to the government for each package. How was our purchase legally possible? “Tax Justice SA stated on Twitter.
READ MORE: FITA Welcomes Tobacco Ruling, Regrets Increase in Illicit Cigarette Trade
In all but one of the 43 stores we visited in CPT, Durban, Joburg and Pretoria we bought cigarettes below the R20.01 minimum tax level. These illicit cigarettes were in full view and the sellers were not afraid of being caught.@SAPoliceService @sarstax pic.twitter.com/PfTjhmjYht
– South African Tax Justice (@TaxJustice_SA) January 20, 2021
“We buy 34 different brands of these illicit cigarettes. Two-thirds of these brands are manufactured by FITA members or your former Gold Leaf member. How can these companies pay taxes if their products are sold at a fraction of what is owed to SARS (South African Tax Service), ”the organization said.
All of our purchases were filmed and a complete evidence file has been provided to @sapoliceservice @DrZweliMkhize @EdKieswetter @the_dti. We need urgent action to stop this industrial-scale looting of funds that should save lives and rebuild our nation.#LockThemUp #TJSAexpose pic.twitter.com/vgSupGuLxT
– South African Tax Justice (@TaxJustice_SA) January 20, 2021
Meanwhile, in a statement on Wednesday, January 20, FITA scornfully dismissed the “fabricated conclusions” of Tax Justice SA.
“Furthermore, we are not surprised by the opportunistic and choreographed statements issued thereafter by organizations that appear to be nothing more than Big Tobacco lap dogs,” said FITA President Sinenhlanhla Mnguni.
ALSO READ: Could another smoking ban be on the horizon?
Mnguni pointed out that most of the cigarette brands mentioned by Tax Justice SA were not current members of FITA.
“Therefore, we suggest that any inquiry related to it be directed to the correct parties.
“It is not surprising that this latest attack on FITA and its members comes shortly after a similar attack by another Big Tobacco front group that was targeting local cigarette manufacturers, and is clearly part of a new Big Tobacco campaign. to try to keep control of its shrinking market share after the #TakeBackTheTax campaign failed, which was exposed by the media for the astroturfing campaign that it was, ”Mnguni said.
Read the full statement below:
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