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British American Tobacco South Africa, the country’s largest player in the cigarette market, says it will not take legal action in an attempt to compel the state to allow the sale of cigarettes.
In early May, the company described the government’s decision to continue the ban on the sale of tobacco products under tier 4 restrictions as “strange and irregular.”
“We have made the decision not to take legal action at this stage, but to continue discussions with the government on the formulation and application of regulations under the Covid-19 blockade,” it said in a statement.
BATSA said it received a response to a letter sent in late April to the National Command Council, and was “convinced that by working together we can find a better solution that works for all South Africans and eliminates the threat of criminal sanctions of 11 million tobacco users in the country “.
The tobacco company, which has a 78% share of South Africa’s legal cigarette market, did not say what the letter said.
The ban on the sale of cigarettes and tobacco products was first instituted on March 26 when the national blockade began. The ban continued below level 4 of the blockade that has been in place since early May.
BATSA reiterated its view that “illicit traders are the sole beneficiaries of the tobacco sale ban.”
“While BATSA supports the government in its mission to prevent the spread of the virus, we believe it is vital that there be a renewed and stronger effort under Tier Four to permanently shut down the illegal tobacco supply lines that have been established in number of past weeks. Reopening the legal, taxed and regulated tobacco market must be part of the solution. “
On Tuesday, SA Revenue Service Commissioner Edward Kieswetter told parliamentarians that cigarettes were still being illegally bought and sold despite the closure.
A separate legal action by the Independent Fair Trade Tobacco Association to compel the state to reintroduce the sale of tobacco products is scheduled to be heard in court as soon as next week. BATSA is not a member of FITA.
The association, in court documents filed earlier in the week, argued that “there is no basis to hold that the ban on cigarettes and tobacco products is related to the fight against the Covid-19 virus.”
