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Litigation: Court ends diplomats' duty-free booze trading

The Constitutional Court recently made a ruling that puts an end to diplomats enjoying duty-free alcohol and tobacco in South Africa. The court estimated that the country was losing about R100 million per month due to diplomats engaging in illegal trading of duty-free products. In response, the finance minister amended certain acts to eliminate duty-free privileges for diplomats when it comes to alcohol and tobacco. This move was challenged by Nu Africa, a company selling duty-free products, arguing that it violated the Constitution by allowing the minister to essentially create a money bill. However, the court sided with the minister, asserting that he had the authority to end this practice in order to curb tax abuses. The court found that diplomats were abusing the duty-free system by selling the goods after purchase. The ruling emphasized the executive's role in understanding day-to-day administrative needs and supported the minister's action as a responsible measure to address the problem. Overall, the court supported the minister's decision to end the abuse of duty-free privileges by diplomats.

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