More SARS red tape for overseas Internet purchases

President Cyril Ramaphosa is eager to create an investor friendly climate in the country but it seems that customs clearance and exchange rules imposed by the South African Revenue Service is having the opposite effect. Recently a health science start-up company told me how their overseas investor eventually decided to undertake tests for one of their products that they planned to roll out in South Africa to a European destination as customs at Oliver Tambo were holding up their goods for months, waiting for clearance from SARS which cost the firm valuable time and money. South Africa lost out on an investment opportunity because of red tape and an overly strict application of exchange controls. President Ramaphosa has said recently that red tape was keeping tourists away from the country, but as I illustrated in this case, it is not only tourists, but also investors the country so sorely need who are put off by red tape and exchange regulations from SARS. A member of our business community has highlighted how SARS is not reducing red tape, but has in fact increased it for individuals buying goods from overseas internet websites. John Pearson was told that he has to register as an importer at SARS if he buys more than three online products a year from online businesses overseas. Pearson contacted Biznews as he thought many South African may be experiencing the same issue. - Linda van Tilburg Learn more about your ad choices. Visit megaphone.fm/adchoices