Sars has been accused by some industry stakeholders of bowing to pressure from the tobacco industry and shelving a report recommending a “track and trace” process, which could be a major boost to revenue collection and curbing illicit trade in cigarettes
The SA Revenue Service has been accused by some industry stakeholders of bowing to pressure from the tobacco industry and shelving a report recommending a “track and trace” process, which could be a major boost to revenue collection and curbing the illicit trade in cigarettes.
According to Sars, problems with the tender for the track and trace system were an issue inherited by Sars commissioner Edward Kieswetter when he took over. The advisory firm was appointed in August after Kieswetter halted a tender process aimed at appointing a service provider, citing the need for the procurement process to be “beyond reproach”, that there be sufficient consultation for there to be no conflicts of interests and for credible broad-based BEE participation.
That means that I have to apply my mind to and address any associated risk to the best of my ability.” Under the now-cancelled process, cigarette companies would have been expected to buy fiscal markers which were going to be used for each and every packet of cigarettes produced.However, some sources within the tobacco industry claim the track and trace system has been a headache for certain tobacco manufacturers who are not willing to be transparent with the exact figures of how much they were making out of cigarette sales.
“This shows the extent and magnitude of the influence that these multinationals have over government and its agents,” said Mnguni. “The result is that there is an extreme focus on the illicit cigarette trade only and hence a perception that this is the sole risk in the industry. This perception, of course, is very far from true.”Prior to this week’s cancellation of the tender, it had already been put off three times.
He also raised the question of satisfactory consultation as there were “many interest groups that will apply scrutiny in detail”.
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