BATSA no longer dragging govt to court over tobacco ban
British American Tobacco South Africa (BATSA) has decided to withdraw its legal action against the government’s ban on the sale of tobacco products.
The company earlier said it is seeking urgent clarity on the decision-making process that led to the government imposing an indefinite ban on the legal sale of tobacco products.
Speaking in KwaZulu-Natal on Tuesday, President Cyril Ramaphosa said the government stands by its decision amid intense criticism and that anyone is welcome to approach the courts of they so wish.
Batsa’s Johnny Moloto says the company will now engage in further discussions with the government on the formulations and applications of regulations under the lockdown.
"We are convinced that by working together we can find a better solution that works for all South Africans and removes the threat of criminal sanction from 11 million tobacco consumers in the country.”
But Moloto says Batsa remains concerned over the rise in the illicit trade of tobacco during the lockdown, something which he says threatens the livelihood of legitimate businesses owners.
"We believe it is vital that there is a renewed and stronger effort under level four (of the lockdown) to permanently close down the illegal supply lines of tobacco that have been established over the past number of weeks. Reopening the legal, taxed and regulated tobacco market must be part of the solution.”
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Cooperative Governance Minister Nkosazana Dlamini-Zuma announced on the eve of the introduction of the level four lockdown that the sale of tobacco products would remain prohibited. This came in spite of an earlier announcement by Ramaphosa that the ban would be lifted. This sparked speculation that Dlamini-Zuma overruled Ramaphosa on the decision to lift the ban.