South Africa hit by major ‘plastic bag tax’ scam: report

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South Africa hit by major ‘plastic bag tax’ scam: report
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The South African Revenue Service is targeting a company a company that allegedly withheld millions in “plastic bag tax’’ paid over by consumers at shopping tills around the country, the Sunday Times reports.

The South African Revenue Service is targeting a company that allegedly withheld millions in “plastic bag tax’’ paid over by consumers at shopping tills around the country, theThe company, which supplies bags to Pick n Pay and other retailers, has been flagged by a whistleblower who accuses it of rigging the system to take almost R10 million a month ‘off the top’ which should have been paid to SARS.

Insiders with knowledge of the investigation confirmed that the taxman is now in talks with the implicated companies to settle the large tax debts uncovered so far. However, it is not clear whether SARS intends to lay any additional criminal complaints against them. The levy was increased to 4 cents a bag from 1 April 2009, 6 cents a bag from 1 April 2013, 8 cents a bag from 1 April 2016, 12 cents a bag from 1 April 2018 and further increased to 25 cents a bag from 1 April 2020.25c/bag to 28c/bag with effect from 1 April 2022. The Budget Review also notes that an upstream plastic tax and a tax on single-use plastics will be investigated.

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