Foreign diplomats can go back to splurging on duty-free liquor and cigarettes after the Gauteng High Court (Pretoria) ruled against attempts by the government to curb what it said was abuse of the diplomatic privilege.

As previously reported, SA expelled several diplomats from Malawi and Lesotho after accusing them of purchasing alcohol and tobacco worth millions of rands at duty-free prices then reselling the products for a profit.

An investigation by the Department of International Relations & Co-operation (Dirco) found one diplomat spent R36m in three months on duty-free alcohol.

The Sunday Times reports that the SARS said the practice cost the country R100m a month.

In April, then Finance Minister Tito Mboweni and SARS introduced a quota system limiting the quantity of alcohol and tobacco products that diplomats can buy duty free.

However, four Pretoria-based retailers selling duty-free products took the government to court, saying the quota system was ‘unconstitutional, invalid and arbitrary’ and violated both local law and international conventions.

In response, SARS and other state organs said there was no inconsistency between the quota system and the Vienna Convention on Diplomatic Relations because the convention operated subject to a host country’s laws and regulations.

According to the Sunday Times report, the government said the quotas were set after Dirco conducted research ‘relating to the benchmarking of quotas in other jurisdictions as early as 2011’.

The retailers argued that this was unsupported by evidence.

Judge DS Fourie agreed, noting that 'in any event, the mere fact that another country has imposed the quotas does not make the Minister’s decision rational'.

Full Sunday Times report (subscription needed)