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British American Tobacco South Africa said on Friday it was commencing urgent legal proceedings to challenge the government’s decision to extend the ban on tobacco sales under a nationwide lockdown.
The sale of tobacco products has been barred since President Cyril Ramaphosa's government imposed the lockdown from March 27, and will remain prohibited even as other restrictions are lifted when the 'level 3' phase of the regime commences from June 1.
In a statement, BAT SA said it was supported in its legal action by Japan Tobacco International as well as groups and organisations representing the tobacco value chain across the country, including consumers, tobacco farmers and retailers.
The company, which enjoys 78 percent market share of the legal cigarette market in South Africa, said it had made every effort to constructively engage the government since the ban came into force, including making detailed submissions to various ministers as well as directly to the Presidency.
To date, it said, no formal response had been received from the government, and the company had also not been included in any of the government’s consultation processes so far.
BAT SA argues that the banning of a legal product will drive millions of smokers to the illicit market, robbing the government of much-needed excise tax contributions, undercutting tobacco control regulations, encouraging criminal behaviour and threatening thousands of jobs.
“Given the situation, and the lack of any response from the government despite our ongoing efforts to engage with them, we are now commencing urgent legal proceedings."
Earlier this week, Agricultural union TLU South Africa said it had formally requested that Ramaphosa set up a judicial commission to investigate the illegal trade in cigarettes.
The South Africa Tobacco Transformation Alliance made a similar call, urging the government to lift the ban on legal sales which it said was fuelling illicit trade.
- African News Agency (ANA)
