THE TOBACCO BILL WILL CLOSE MORE SMALL BUSINESS AND DESTROY COUNTLESS JOBS
Stakeholders in the tobacco industry expressed their support for regulation in the industry. However, they emphasized that any regulations should be based on reality and should not result in job losses. The stakeholders, including British American Tobacco SA (BATSA), held a press briefing in Johannesburg in response to the Parliament's invitation for public comments on
THE TOBACCO BILL WILL CLOSE MORE SMALL BUSINESS AND DESTROY COUNTLESS JOBS
Stakeholders in the tobacco industry expressed their support for regulation in the industry. However, they emphasized that any regulations should be based on reality and should not result in job losses. The stakeholders, including British American Tobacco SA (BATSA), held a press briefing in Johannesburg in response to the Parliament’s invitation for public comments on the Tobacco Products and Electronic Delivery Systems Control Bill.
BATSA’s general manager, Johnny Moloto, argued that the bill would have detrimental effects, leading to the further destruction of the legal tobacco value chain and the establishment of a dominant illicit trade. He pointed out that during the 2020 tobacco sales ban implemented during the Covid-19 lockdown, illicit trade soared as consumers turned to unfamiliar brands. Moloto claimed that illicit trade currently accounts for up to 70% of cigarettes sold in South Africa, suggesting that the government’s existing tobacco control measures are already ineffective.
Moloto criticized proposed measures such as plain packaging and retail display bans, arguing that they would push legal cigarette smokers towards illicit products, making them inaccessible to the government’s control measures. He stated that BATSA supports the need for regulation and is committed to reducing the health impacts of its business by providing smokers with alternatives to cigarettes.
Moloto also emphasized the importance of brand choice for consumers, stating that removing brand identifiers through plain packaging would make price the primary consideration, leading to a shift towards cheaper, mostly illicit options. He argued that this would make smoking more affordable and likely increase consumption.
Warren Dreyer, owner of a chain of specialist tobacco stores, expressed concerns about the proposed bill as well. He highlighted that if passed, the legislation would ban the display of tobacco products in his stores. Moreover, even accidentally leaving a packet of cigarettes or a vape on the counter could result in severe penalties, including imprisonment. Dreyer emphasized the need for economic stability, growth, and job creation in the country, stating that small businesses play a crucial role in achieving these goals. He criticized the government’s policies and regulatory framework for hindering the growth of small businesses instead of enabling them.
François van der Merwe, representing Limpopo Tobacco Processors, acknowledged the necessity of regulating tobacco but emphasized the importance of realistic and workable regulations based on economic and social realities. He criticized the government for allowing the expansion of criminal networks involved in tax evasion and urged them to reconsider their approach.
The Lesedi Black Business Forum (LBBF) called for an extension of the deadline for public comments on the bill, stating that rushing the process would be inappropriate given the potential impact on ordinary South Africans and businesses. They emphasized the importance of meaningful and empowering participative democracy.
The Forum said the bill has not been made available in any languages other than English, as many small business owners do not speak or read English at the same level as the technical English used in the draft legislation.
