The commentary period is now closed. Follow us on Facebook or Twitter to get updates on any responses we may receive from Government.

WHERE ARE WE NOW?



On 28 September 2022, the unchanged Bill was given the greenlight for Parliament, with no consideration of the detrimental consequences of the Bill to the country, highlighted during the 2018 commentary period. In June 2023 Parliament gave it the go ahead for legislation.

WHY DO WE CARE?

0%

rise in illicit tobacco sales occurred in Australia due to similar laws

0,000

jobs at risk

R0 B

BILLION lost tax revenue since 2010 due to illicit trade

0

days potential jail time for smoking

Why is tobacco legislation being prioritized over more pressing issues?

In September 2022, Cabinet gave the go-ahead for the new tobacco Bill to be presented in Parliament. It is now open for public comment by Parliament. The Bill was first introduced in 2018, with many problematic inclusions that the public, stakeholders and industry commented on, however none of those comments seem to have been considered in the new draft at all.

We’ve had 2 896 hours of load shedding in 2023 so far, compared to 3 751 in the whole of 2022. We are facing a power crisis and instead of fully prioritising that issue, Government is focusing on the new tobacco Bill – legislation that will cripple retailers, restaurants, bars & taverns on top of alternate power source costs.

In Q1 of 2023 unemployment was at an overall 32.9%, while the youth rate, age 15-25 is 62.1%. Unemployment is massive issue for SA and the new plain packaging rules will mean a rise in illicit trade, less revenue for legal farmers, distributers, retailers and taverns and will impact the 192 000 jobs in the value-chain.

Consumers have been suffering exponential price increases in fuel, contributing to the massive cost of living crisis facing SA. An issue that could be offset by the billions in tax losses the new tobacco Bill will result in as illicit trade rises due to plain packaging.

It is estimated that Government lost between R4.5 billion and R6 billion in excise taxes on tobacco products during the lockdown ban due to illegal trade. The plain packaging proposed in the new tobacco Bill will only increase the illicit market instead of fighting it

An estimated 5 trillion rand was lost to corruption in just years between 2014 and 2019. Yet Government is introducing a tobacco Bill that will require millions in infrastructure changes and enforcement costs instead of focussing on our severe corruption problem.

In Q1 of 2023 unemployment was at an overall 32.9%, while the youth rate, age 15-25 is 62.1%. Unemployment is massive issue for SA and the new plain packaging rules will mean a rise in illicit trade, less revenue for legal farmers, distributers, retailers and taverns and will impact the 192 000 jobs in the value-chain.

Plain packaging will increase the illicit and unregulated tobacco trade, making this Bill very dangerous to business and the legal tobacco industry. The growing illicit market translates into an annual loss of between R9 billion and R10 billion in tax revenue for government. The excise tax incidence per pack is 45.2% and with value added tax (Vat) of 15%, government puts R23.90 per pack in its pocket.

OUR POSITION

"We believe in tobacco regulation, however we also believe in regulation based on evidence."

industry 1

On Regulation

industry 2

On Plain Packaging

industry 3

On Display Bans

industry 4

On Illicit Trade

industry 5

On The Slippery Slope

IN THE NEWS

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  • Times LIVE

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  • Sunday Times

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  • Cision

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  • Cision

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HAVE YOUR SAY
Have your say-3

The Government says the new Tobacco Bill aims to reduce the uptake of smoking, particularly in the youth. However, the regulations being introduced in this Bill barely address that objective and are largely unsupported by any evidence. The jail time, the Minister's excessive control, the rise of the illicit cigarette trade and a number of unintended consequence are just some of the major issues present in the new Bill. This is your chance to get your message to Government.

Have your say-1

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