The Social Movement for Advocacy, Rights and Transformation (SMART) has called on the South African Revenue Service (SARS) to crack down on widespread tax evasion in the spaza shop industry.

The group says many outlets, allegedly run by undocumented foreign nationals, operate unlicensed, dodging taxes while using public services and infrastructure.

SMART’s Communications Manager, Lehlogonolo Muthevhuli says, “The spaza shop industry is a billion-rand industry and based on the public protector’s findings, there is a high level of non-compliance. In Gauteng alone, there is over 50% non-compliance in registration. This means that a lot of the spaza shops are using public services but are not paying for it. This includes water, electricity and refuse removal. So, by not registering, it means that you’re not paying for tax and it means that you’re not paying for services and it puts a heavier burden on the South African government.”

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