Anna Cox
THE SA Revenue Service (SARS) has purchased a fleet of 10
specially-designed vehicles for its Fuel Testing Unit, at a cost of
R1 million, to combat value added tax (VAT) and excise duty fraud through the mixing of paraffin and diesel.
This illegal practice, which is used mainly by road hauliers and farmers, is costing the SARS between R300 million and R500 million a year in lost revenue.
The Customs and Excise Act has now been amended to make it compulsory for manufacturers and importers of paraffin to blend a chemical tracer or marker in paraffin and other specified duty-free solvents. The marker is added to paraffin in small quantities but is still detectable, even when diluted up to 20 times.
Previously the unit, which was established in March last year, only had two vehicles available for testing.
Tests will now be taken at roadblocks. So far, the SARS has laid criminal charges against 20 repeat offenders and imposed civil penalties on about 100 other offenders.
The fine imposed is 200% of the value of illegal fuel discovered.
