SARS seizes massive illicit alcohol consignment in Kempton Park raid
The South African Revenue Service (SARS), in collaboration with the South African Police Service’s Directorate for Priority Crime Investigation (DPCI), has intercepted a large consignment of illicit alcohol in Kempton Park, Gauteng, dealing a significant blow to criminal syndicates operating in the sector.
The operation, carried out on Wednesday, forms part of SARS’s intensified efforts to clamp down on the illicit economy. Authorities raided a warehouse identified as an illegal storage facility for imported ethanol — a high-strength alcohol commonly used in the production of liquor.
Officials discovered that a shipment of 26,000 litres of ethanol, with an alcohol content of approximately 96%, had been diverted to the warehouse. The consignment had originally been declared as “in-transit,” meaning it was intended for export to another African country and should not have entered the domestic market.
According to SARS, the shipment was one of four similar consignments and had been unlawfully offloaded into 1,000-litre containers at an unlicensed and unregistered facility.
Investigators also uncovered additional storage tanks and flow bins on site, suspected to contain a further 28,000 litres of ethanol. These contents are still undergoing testing.
The seized ethanol carries significant tax implications.
On the legal market, such alcohol attracts a duty rate of approximately R302.84 per litre, meaning the state stood to lose an estimated R9.1 million in duties and taxes from just one consignment.
SARS says in a statement that the bust highlights the scale and sophistication of illicit alcohol operations, which often exploit tax loopholes by diverting goods meant for export into the local black market. These activities not only deprive the state of billions in revenue annually but also place legitimate businesses at a competitive disadvantage and expose consumers to potentially unsafe products.
SARS Commissioner Dr Johnstone Makhubu praised the success of the joint operation, emphasising the importance of coordinated enforcement.
"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."
He added that the illicit alcohol trade is far from a victimless crime, warning that it undermines the economy, harms lawful businesses, and fuels organised crime networks.
Authorities say the operation demonstrates the growing effectiveness of partnerships between SARS, SAPS, and other government agencies in tackling complex financial and commercial crimes.
Makhubu issued a strong warning to those involved in illegal trade.
"We will not surrender the destiny of this country to criminals or tolerate brazen alcohol smuggling and tax evasion."
Investigations are ongoing, and further enforcement actions are expected as authorities continue to dismantle illicit trade networks across the country.
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