Tabacco industry stakeholders say newly proposed smoking laws for South Africa introduce extreme and inappropriate penalties for businesses in the country and will kill thousands of small businesses and the jobs they provide.
The bill’s proposed regulations include a complete ban on the display of all tobacco and related products across all retail channels, even in specialist tobacco stores – sparking concerns across the industry. Additionally, 75% said the bill would criminalise hard-working legal businesses, while 86% said it would damage the lives of employees who depend on small businesses, especially in these exceptionally tough economic times.
The illicit trade’s market share currently stands at around 60% of the total tobacco market in South Africa. While it was high before Covid-19, the tobacco ban significantly increased illicit trade’s market share to the point where it now far exceeds that of legal tobacco companies, said Bravo.