SARS Seizes 26,000 Litres Of Illicit Ethanol In Gauteng Raid, Prevents R9.1 Million Tax Loss

The South African Revenue Service (SARS), working alongside the South African Police Service's Directorate for Priority Crime Investigation (DPCI), has seized a large consignment of illicit ethanol during a raid in Kempton Park, Gauteng.

The operation, carried out on Wednesday, targeted a warehouse allegedly being used to store imported ethanol illegally. Authorities say the seizure forms part of an intensified campaign to disrupt illicit trade and combat tax evasion.

SARS Seizes Illicit Ethanol Worth Millions In Gauteng

During the operation, investigators found 26,000 litres of ethanol with an alcohol content of about 96% at an unlicensed warehouse.

According to SARS, the shipment had been declared as "in-transit", meaning it was destined for export to another African country and should never have entered the South African market.

Officials believe the consignment was one of four similar shipments that had allegedly been diverted and transferred into 1,000-litre containers at an unregistered storage facility.

Investigators also discovered additional storage tanks and flow bins believed to contain another 28,000 litres of ethanol, which are still being tested.

Illicit Alcohol Shipment Could Have Cost SARS R9.1 Million

SARS said the seized ethanol carried significant excise duty implications. If it had entered the legal market, the alcohol would have attracted duties of approximately R302.84 per litre.

Based on that rate, authorities estimate the state could have lost around R9.1 million in duties and taxes from the single consignment.

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The revenue service said the case highlights how criminal syndicates exploit customs procedures by diverting goods declared for export into South Africa's illicit market.

According to SARS, these activities deprive the country of substantial tax revenue, disadvantage compliant businesses and expose consumers to potentially unsafe alcohol products.

SARS Commissioner Warns Criminal Syndicates

SARS Commissioner Dr Johnstone Makhubu praised the joint operation and said it reflects the success of intelligence-led enforcement efforts.

"This initiative aligns with SARS’s strategic goal of making non-compliance hard and costly through intelligence-led interventions aimed at customs fraud, excise-duty evasion, smuggling, and illegal trade."

Makhubu said the illicit alcohol trade has far-reaching consequences beyond lost tax revenue, including harm to legitimate businesses and the strengthening of organised crime networks.

He also praised the collaboration between SARS, the DPCI and other government agencies in tackling complex commercial crimes.

"We will not surrender the destiny of this country to criminals or tolerate brazen alcohol smuggling and tax evasion."

Authorities confirmed that investigations are continuing and indicated that further enforcement action is expected as efforts to dismantle illicit trade networks continue.