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S.African Tobacco Firms, Associations Seek Court Action Over Cigarette Sales Ban

Published on May 29 2020 2:59 PM in Coronavirus tagged: Trending Posts / South Africa / Cigarette / Japan Tobacco International / BATSA

S.African Tobacco Firms, Associations Seek Court Action Over Cigarette Sales Ban

A raft of South African tobacco companies, activists and associations are seeking legal action over the ban on cigarette sales during the country's coronavirus lockdown.

South Africa is moving to a more eased level 3 lockdown in a five-level system from 1 June, allowing most economic sectors, including mining and manufacturing, to fully resume operations.

Health Risks

The relaxed regulations will also allow the sale of alcohol for home consumption. But the government has maintained the ban on sales of tobacco, citing health risks that make people vulnerable to the coronavirus.

British American Tobacco South Africa (BATSA) said it was commencing urgent legal proceedings to challenge the government's decision to extend the ban on tobacco sales.

BATSA, which sells brands such as Dunhill, Camel and Lucky Strike, has said the ban could boost illicit trade in tobacco as smokers were more likely to buy from underground traders.

The ban was 'robbing the government of much needed excise tax contributions ... and threatening thousands of jobs,' the company said in a statement.

BATSA is the leading tobacco manufacturer in South Africa with 78% market share of the legal cigarette market.

Legal Challenge

Japan Tobacco International, another multinational in South Africa, groups of farmers, retailers and consumers are also part of the legal challenge, BATSA said.

Separately, the Fair-Trade Independent Tobacco Association (FITA), which represents the interest of local cigarette manufacturers including Gold Leaf Tobacco Company and Carnilinx, in early May took the government to court on the continued ban.

FITA said its lawsuit will be heard at Pretoria High Court from 9 June.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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