The South African Revenue Service (SARS) is turning up the heat on illegal diesel blending, launching a raid on a suspected multibillion-rand operation in Meyerton, Gauteng.
This follows SARS’ ongoing crackdown on the illicit trade, which recently led to the closure of another depot in Louis Trichardt, Limpopo.
Preliminary investigations have revealed staggering numbers tied to the company at the centre of the scandal.
SARS found that between 2019 and 2023, the company reported R5.6 billion in revenue, with VAT turnover reaching R7 billion, and PAYE payments amounting to R1.1 billion.
Further scrutiny of the company’s financials showed more than R8.6 billion in various bank accounts, underscoring the size of the alleged illegal operation.
The Meyerton depot, which SARS has identified as a hub for diesel adulteration, has raised significant concerns.
Investigators found evidence suggesting that illuminating paraffin, which is taxed differently to diesel, was being tampered with to produce cheap, dirty diesel.
Samples taken from the site confirmed this illicit practice.
In South Africa, paraffin is exempt from the hefty duties applied to diesel, but it must be marked with a specific chemical.
The absence of this marker suggests deliberate tampering, making this an unlawful operation aimed at skirting taxes and regulations.
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The crackdown comes at a time when South Africa’s fuel sector is grappling with the growing problem of diesel contamination.
Earlier this year, Minister of Petroleum and Mineral Resources Gwede Mantashe warned of the risks posed by contaminated diesel, revealing that at least 70 petrol stations had been caught selling diesel mixed with paraffin.
SARS’ actions signal a tough stance on illegal fuel blenders, who not only undermine the economy but also pose a serious threat to consumers, as contaminated fuel can cause significant damage to vehicle engines.
The department has vowed to intensify fuel quality checks nationwide as the battle against this illicit trade continues.
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