Proposed smoking regulations ignore 'illicit trade crisis', says consumer body
'The bill also draws an unfair distinction between the formal and informal sectors. The informal sector is not held to the same compliance standards and that imbalance is not fair. We ask that this gap be closed by ensuring that all businesses, formal or informal, are required to hold the necessary licences, registrations and compliance documentation.'
CGCSA proposed that separate consultative legislative processes should continue.
'Illicit trade in tobacco has increased by between 60% and 70%, and we are demanding urgent prioritisation of this issue, because what we are witnessing is a full-blown crisis,' Tyikwe said.
She said the value chain faced mounting pressure from the bill.
'While it aims to improve public health outcomes through stronger tobacco control, it also carries implications for the entire tobacco and nicotine value chain. The total farming yields have declined, worsened by the 2020 lockdown, which reduced employment from 11,000 to 6,000 workers, who are supporting at least 80,000 dependents.
'These farmers contributing to the national fiscal without government aid exemplifies the value chain's fragility. Retailers must also reconfigure points-of-sales at significant costs to conceal products, while specialists, tobacconists and vaping stores face customer loss. Informal traders, such as spaza shops, lack the infrastructure to comply, facing criminalisation and exclusion from legal trade.'
CGCSA legal, regulatory and sustainability executive Neo Momodu said the statement constantly being made was that business wanted to make a profit.
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