To combat tax evasion, South Africa's tax authority gets court approval to install surveillance in t

After winning a lawsuit against the Gauteng High Court, the South African Revenue Service (SARS) will install CCTV cameras in warehouses to combat the financial gap caused by illegal tobacco trade, according to the Daily Independent.

This surveillance plan aims to fill the fiscal deficit caused by illegal tobacco trade. It is estimated that the South African government loses about 8 billion rand (approximately $431 million) in tobacco tax revenue each year due to tax evasion.

The Fair Trade Independent Tobacco Association (FITA), representing 80% of licensed cigarette manufacturers in Southern Africa, attempted to block the installation of cameras through the courts. In two separate applications, 11 tobacco companies sought to prevent SARS from enforcing regulations issued under the Customs and Excise Act.

The tobacco companies argued that the new regulations were unconstitutional and constituted an unreasonable invasion of privacy, dignity, and property rights.

Judge Jacques Minnaar dismissed their lawsuit on December 29, stating that the companies were aware that the permits for warehouses were conditional, allowing SARS officials to install cameras without restriction.

The court added that these companies were aware that British American Tobacco and Gold Leaf had installed CCTV cameras in February 2023.