Tobacco industry fears more regulation will cost jobs & strengthen black market

Local tobacco manufacturers say they are worried that the new bill aimed at curbing smoking could have the opposite effect.

The Tobacco Products and Electronic Delivery Systems Control Bill seeks to change where people can smoke and how cigarettes are packaged.

But there are fears that tighter regulations could also see the legitimate tobacco industry go up in flames.

Independent tobacco manufacturers in the country believe that over-regulating the tobacco industry could impact the economy, leading to possible job losses and gives more power to the black market.

That’s because if the bill is passed into law, it would be illegal to smoke indoors or even in a car in the presence of a minor, and it would mean a ban on the sale of cigarettes at vending machines.

But the calls for further amendments to tobacco laws appear to have widened the gap between public health interests and the interests of the industry.

Chairperson of the Fair Trade Independent Tobacco Association, Sinenhlanhla Mnguni, admits it’s a juggling act.

“Arguments are made by both sides, with the tobacco industry stating they contribute approximately R15 billion by way of excise taxes. The anti-smoking lobby group estimates that the cost to the healthcare system to be about R45 billion.”

While independent manufacturers are not opposed to the bill, Mnguni has warned that government could fall short on enforcement measures.

“So really, you’re just going to strengthen the black market the more you regulate the industry,” Mnguni said.

Multinational producers are yet to detail their response to the bill.

-EWN

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