Informal traders fear unintended consequences of Tobacco Bill on them
16 September 2023
Small-scale informal traders in the greater Makhado Local Municipality have pleaded with the Portfolio Committee on Health that the Tobacco Products and Electronic Delivery Systems Control Bill (B33-2022) in its current form will criminalise traders and will have an unintended consequence of closing their businesses. The committee concluded the first of three public consultation sessions in Limpopo at the Makhado Main Hall in Louis Trichardt.
Expressing their objection to the Bill, informal traders suggested that the high unemployment rate in South Africa will be exacerbated by the Bill as they will be forced to close their businesses. Also of concern to them was the harsh penalties proposed by clause 16 (4) of the Bill that recommends a conviction to a fine or to imprisonment for a period not exceeding 10 years or both a fine and such imprisonment for contravening clause 4(3) (c) which prohibits the sale of single stick tobacco products.Those against the Bill also cautioned that the overregulation of the tobacco industry will have a negative impact on the national fiscus as the tax contribution of the industry will stop. Furthermore, there were concerns that the Bill will lead to the growth of illicit trade in tobacco which already has a large market share.
The concern raised was that illicit cigarettes did not conform to production standards and make no contribution to the tax revenue base. Those against the Bill suggested that government should rather focus its energies on fighting illicit trade in tobacco products and defeating the scourge of drugs in society.
Despite these concerns, the Bill was supported by others especially because it has the potential of reducing consumption of tobacco products and alleviate the huge financial burden on the healthcare system to care for patients with ailments caused by consumption of tobacco products. Also, there was support for clause 3 (5) (a) which prohibits the display of tobacco products as there was a belief that it will prevent compulsive sale of tobacco products.