The South African Police Services (Saps)’s National Counterfeit and Illicit Goods Unit has confiscated counterfeit goods worth more than R5 million in Bloemfontein, Free State.
Police spokesperson Amanda van Wyk said on Saturday the counterfeit goods were confiscated over the two-day long joint operation.
“They were supported by the Free State Counterfeit and Illicit Goods Unit, South African Revenue Services Tax Investigation Unit, Customs Free State Dog Unit, Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea) Consumer Protection Office, Anti-Gang Unit, and brand protectors,” she said.
6000 fake goods seized
Van Wyk said more than 6000 counterfeit items were seized, which included clothing, shoes, high-end fashion accessories, cell phone accessories, pharmaceuticals, and consumables.
Counterfeit goods harm the economy by diverting money from legitimate businesses, reducing tax revenue, and undermining jobs and investment. These are fake products made to look like genuine branded goods, often sold illegally to mislead consumers.
She added that similar operations were carried out in other provinces this week as part of ongoing efforts to dismantle the illegal trade in counterfeit and illicit goods nationwide.
Fake goods worth R200m seized
Van Wyk said counterfeit goods worth R200 million were seized in March during nationwide operations.
Minister of Finance Enoch Godongwana has previously expressed concern about the rising rate of illicit trade, stating that the government could have used the money lost to the black market to avoid raising taxes.
Referring to the South African Revenue Services’ (Sars) data, he said the government has lost at least R40 billion in excise revenue to the illicit cigarette market since 2020. Similar amounts have also been lost to illicit alcohol and fuel.
Money could have been used to better the country
Godongwana highlighted that these billions of rands could have been used to avoid tax increases. “Each year, billions of rands in taxes go uncollected, funds that could have closed our revenue gap and avoided tax increases entirely.”
He noted that the growing black markets for illicit cigarettes and alcohol not only hurt the country’s economy, but they pose a serious risk to public health and undermine legitimate businesses.
Godongwana applauded the government for the efforts it has made in combating thetrade of illicit cigarettes in the country. “Government is clamping down on this illegal trade. In the last six months, Sars suspended three licences for non-compliant tobacco production,” he said.
