SOUTH AFRICA
British American Tobacco South Africa (BATSA) and Japan Tobacco International (JTI), the two largest tobacco manufacturers in South Africa, have joined forces taking legal action to challenge the government’s extension of the ban on cigarette sales during level three of the national lockdown.
BATSA said it was suing the government because the ban on the sale of tobacco sales was threatening the survival of the legal tobacco sector and the livelihoods it directly supported. It also said the ban on tobacco sales had succeeded only in growing a nationwide illegal industry at the direct expense of law-abiding businesses, citizens, and taxpayers, and that it was causing the National Treasury to lose SAR35 million in excise taxes every day.
JTI corporate affairs director, Bongani Mshibe, said, “There are 11 million smokers in this country, and tobacco is a legal product. The ban is an infringement on adult choices and right to use these products. The government is not listening to the industry or consumers, so it is now clear that government intends to keep the ban for the foreseeable future. We, unfortunately, have no choice but to turn to the courts for relief, which could have been avoided had government consulted with the legal tobacco industry.
“We are aware of only three countries in the world, including South Africa, that did not list tobacco as a basic good at the commencement of a lockdown, and one of those, India, has now lifted its initial prohibition. It is surprising that South Africa has taken a different stance with an ailing economy.”