Dishonest rail users are now being targeted
THE VAT collection system introduced by South African Revenue Services (SARS) at the country's border posts last year has boosted the government's coffers, says SARS spokesman Christo Henning.
In January alone an increase of R67,5 million was taken
in goods imported from Botswana, Swaziland, Lesotho and Namibia (BLNS countries), he says.
By moving VAT collection points to the borders with these countries and reducing the points of entry for commercial goods by road from 52 to 19 last year, SARS has shown a substantial improvement in revenue, he says.
It has practically eliminated VAT evasion relating to fictitious exports, which was running at an estimated R100 million a month. VAT losses through round-tripping, where goods were exported to the BLNS countries and then reimported and sold in South Africa without VAT, has been substantially reduced.
Now SARS is targeting what they term less-than-honest exporters and importers who are shifting their cargo from road to rail to escape paying dues. The officials have designated five railway stations as ports of entry for the clearance of cross-border goods.
These are Upington, Mafikeng, Maseru Bridge, Germiston and Golela.
A national special investigation unit has been established to conduct invrestigations into evasion and fraud.
By Leonard Neill
