Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I was quite shocked to hear how much money is involved in illegal cigarette trade. Apparently, it only costs about R2,00 to manufacture a box of cigarettes with the result that, if you can get it into the country without paying tax, there are huge profits to be made. The Sunday Times in fact said that the profit on illicit cigarettes can exceed that on guns, cocaine and everything else! This all came about due to the crackdown that SARS apparently plans on the tobacco industry because many in the tobacco industry are dodging tax and excise duty. Amongst the companies they apparently are going to look at is a company called Amalgamated Tobacco Manufacturing or ATM which is apparently linked to Edward Zuma, the eldest son of President Zuma. The company and Edward Zuma have denied that he is a director anymore but it will be interesting to see what comes out as ATM apparently sells their cigarettes at R7,00 a pack and each box of cigarettes needs to attract at least R13,00 of tax, so it sounds like there is something certainly strange in that price!
Posted by Michael de Broglio on Tuesday 03-Dec-13
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Comments
william - m said:
on Saturday 28-Jun-14 07:24 AM
I agree with all the comments if any person or company can follow the rules why can't the rest also follow the rules.
Tanki said:
on Wednesday 28-May-14 07:43 PM
I can't blaim componies about not paying tax as long as they hire people becouse we always complaining about job creation
Brenda said:
on Wednesday 11-Dec-13 02:33 PM
Of course mini Z is involved, corruption is hereditary. But what goes around, comes around. Every high thing must come down, every stronghold will be broken.
Catherine said:
on Monday 09-Dec-13 01:03 PM
The president is clearly leading by example.
Alexis said:
on Monday 09-Dec-13 08:23 AM
Everybody wants to make a quick buck - and corruption is rife these days. I do not support this and will never
Henrietta said:
on Friday 06-Dec-13 03:30 PM
Lee-Ann said it the best. It really is no surprise that the president's son is involve.
Cindy said:
on Thursday 05-Dec-13 02:21 PM
Apparently money does make their worlds go around!
Thabitha said:
on Tuesday 03-Dec-13 02:20 PM
I don't know what is our courty going to be next coming years its sad
Bianca said:
on Tuesday 03-Dec-13 01:55 PM
This is absolutely disgusting, the corruption that fills our country is disgraceful. Again, I say that there is so much about our country to be proud of but the corruption and fraud is something to be ashamed of. People that purchase "illegal" cigarettes are to blame in this situation - stop encouraging this....
Lizanne said:
on Tuesday 03-Dec-13 01:04 PM
I do not smoke and think it is a waist of money. What a shocker though....a relative of the president! Actually, we shouldn't be surprised.
Lizanne said:
on Tuesday 03-Dec-13 01:04 PM
I do not smoke and think it is a waist of money. What a shocker though....a relative of the president! Actually, we shouldn't be surprised.
david said:
on Tuesday 03-Dec-13 01:01 PM
i don't know what to say. the president is a lying thief, why would his children be any different? think of Aurora etc etc etc. We swapped one bunch of mad nationalists for another. viva anc, viva....
Juliet said:
on Tuesday 03-Dec-13 09:29 AM
Aahhh another relative of the president of this country making us proud! The thing that bugs me is even when they are caught there are simply never ever any repercussions! So frustrating
Sally said:
on Tuesday 03-Dec-13 09:12 AM
The whole government is one big corruption committee , no shock at all that it is a relative of the president that's involved.
Liesl said:
on Tuesday 03-Dec-13 09:06 AM
There are two ways illicit cigarette sales negatively influence the economy evasion of taxes on brands imported or manufactured in South Africa; and the counterfeiting of a legal brand. Locally the evasion of taxes is the most common one.
Lee-Ann said:
on Tuesday 03-Dec-13 08:45 AM
As they say, "the apple does not fall to far from the tree."
Sorea said:
on Tuesday 03-Dec-13 08:28 AM
Is anyone even surprised that one of our illustrious president's children are "allegedly" involved?
On a side note, I agree with Tanya ... there is some Gold and Diamond Encrusted Drug Lord in Columbia that cannot believe what he is reading.
Lourien said:
on Tuesday 03-Dec-13 08:24 AM
I don't smoke at all, but I will have to say not paying Tax can only be a bargain as the Tax in our country is totally ridiculous and we are paying Tax on Tax and there is no difference in giving your money away to a corrupt government that is anyway not using it for any good. I would rather give that extra R13 away to someone that needs it than the government.
kaylee said:
on Tuesday 03-Dec-13 08:22 AM
Another corrupt relative of the president, should we be shocked?
Anjelica said:
on Tuesday 03-Dec-13 08:17 AM
I agree with Lorette, there will always be people that never obey the rules, why they do that no one knows. Cigarettes being sold for that price is shocking, being worse than Cocaine & guns. Bad News.
Zelda said:
on Tuesday 03-Dec-13 08:12 AM
It is scary to know that this is what the world has come to.
I personally think that illegal substances are the least of our problems...
Lorette said:
on Tuesday 03-Dec-13 08:10 AM
I am not even surprised to hear that cigarettes are being sold at these prices. Just like everything else there will always be people that does not pay tax and won't obey the rules.
Caron said:
on Tuesday 03-Dec-13 08:01 AM
Clearly climate change and tax evasion versus possession and distribution of an illicit substance favours the tobacco plant over the coca plant.
To quote Tanya: "It's a sad world when people would rather have a smoke than get high."
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
