The FF Plus submitted notice of a motion to Parliament this week, requesting that a debate be held on the trade in illegal tobacco products and measures to combat the problem.
The smuggling of illegal tobacco products is increasingly becoming a serious problem in South Africa.
The Tobacco Products and Electronic Delivery Systems Control Bill, which aims to more stringently regulate the use and distribution of tobacco products, is currently being considered by the parliamentary Portfolio Committee on Health.
It will not have the desired effect of encouraging users to stop smoking, instead, it will bring about a drastic increase in the illegal tobacco trade.
At present, illegal tobacco products comprise 70% of the entire market. So, it makes no sense to further restrict and regulate the legal tobacco trade, which comprises a mere 30% of the market.
With the Covid-19 lockdown, during which the sale of legal tobacco products was prohibited by senseless regulations, South Africa saw a very sharp increase in the illegal tobacco trade.
It dealt the country’s economy a severe blow. The loss in tax revenue suffered by the economy between 2020 and 2023 is estimated at around R92 billion.
The FF Plus is of the opinion that the new legislation should be put on ice until the illegal trade in tobacco products has been curbed.
There already exists legislation on the use and regulation of tobacco products, namely, the Tobacco Products Control Act 83 of 1993. This Act should simply be better implemented, policed and enforced.
Existing tobacco farmers and their employees as well as others in the tobacco industry, such as the nearly 2,2 million informal vendors, could suffer drastic revenue losses should the existing Bill be passed.
These are the people who make an honest living from the cultivation and sale of legal tobacco products and they are the ones who should be protected by the Government of National Unity (GNU).
Due to these reasons, the FF Plus cannot support the proposed Bill which was tabled in December 2022 already.
The former ANC administration put forward a badly thought-out piece of legislation, and the party is of the opinion that the Bill should be referred back to Nedlac.
It will afford government, the labour sector, and business and community organisations the opportunity to consider it again carefully before the Portfolio Committee on Health deals with it.
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