The Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter, has welcomed the decision of the Constitutional Court in the matter between Nu Africa Duty Free Shops (Pty) Ltd and Others and the Minister of Finance and Others.
The matter arose when the SARS Commissioner identified and reported abuse in the system where certain diplomats were purchasing duty-free tobacco and alcohol in South Africa and reselling them in the domestic market. These investigations estimated that the fiscus was losing about R100 million per month.
The Minister of Finance then announced a review of the treatment of duty-free shops, which would include a revision of the schedules made under the Customs and Excise Act and the VAT Act that regulate the duty-free retailers.
Source: SARS
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