JTI and Batsa join forces to fight cigarette and tobacco ban in court

The two largest tobacco manufacturers based in SA, Japan Tobacco International (JTI) and British American Tobacco SA (Batsa), have joined forces along with a host of civil society and concerned citizens, to lift the lockdown prohibition on the sale of cigarettes and other tobacco products.

The matter is headed to court, to challenge the ban imposed under section 27 of the Disaster Management Act regulations. 

Bongani Mshibe, JTI director of corporate affairs, says: “The legal tobacco industry has attempted to consult the government, including making submissions as to how the sale and distribution of tobacco products can take place without affecting the spread of Covid-19 during any lockdown level. These consultation attempts and numerous submissions have not been taken into consideration. 

“There are 11-million smokers in this country, and tobacco is a legal product. The ban is an infringement on adult choices and their right to use these products. The government is not listening to the industry or consumers, so it is now clear that it 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 if the government consulted with the legal tobacco industry.” 

The preliminary and limited data available provides no convincing evidence as to whether smoking increases or decreases the probability of being infected or admitted to hospital with Covid-19, and there is presently no data available on vaping in relation to Covid-19. It is therefore irresponsible to draw concrete conclusions, or create public policy, based on incomplete science. 

Mshibe says: “There is, however, abundant evidence that despite the ban, consumers are continuing to smoke and find alternatives in illegal cigarettes, effectively criminalising SA’s smokers. There has been huge growth in illicit tobacco sales since lockdown. The risks are clear and evident, with consumers having to travel to find illegal products and being forced to share cigarettes. This has opened a door that will not easily be shut.” 

Almost all countries that have implemented social lockdowns to reduce the spread of the virus have permitted the sale of tobacco products, including the US, UK and China, where some of these inconclusive studies on the link between smoking and Covid-19 are being cited. 

“We are aware of only three countries in the world, including SA, that did not list tobacco as a basic good at the start of lockdown, and one of those, India, has now lifted its initial prohibition. It’s surprising that SA has taken a different stance with an ailing economy. 

“Based on 2019 Ipsos figures, the SA government is losing more than R10bn annually in tobacco tax revenue — or more than R30m each day — since the start of lockdown. With no end in sight to the ban, as we are following a risk-adjusted model, the losses to the fiscus seem set to continue. This comes at a time the government needs revenue more than ever,” says Mshibe. 

If you add up these losses from March 27 (day 1 of lockdown) to today, May 29, that amounts to R1.92bn in lost revenue to illicit tobacco, while legal tobacco retailers and wholesalers are losing R65m every day of not selling.

This is government revenue that could have funded the R350 grant to 5.2-million South Africans over lockdown. The government is also placing 109,000 jobs and 179,000 wholesalers and retailers at risk, including the livelihood of emerging farmers. This extreme regulation approach will deter investor confidence in SA. 

Visit the Japan Tobacco International website for more information.

This article was paid for by Japan Tobacco International SA.