Tobacco, alcohol industries bemoan another week of lost revenue
The tobacco and alcohol industries have again expressed their disappointment at government for the continued ban on the sale of these items during lockdown.
Both industries claim to have lost billions of rands in revenue because of the ban.
British American Tobacco South Africa (BATSA) and the Fair-Trade Independent Tobacco Association (Fita) are yet to learn their fate in the court of law.
BATSA’s application to set aside the ban on the sale of tobacco products was heard in the Western Cape High Court this week and judgment has been reserved.
“This has been a long and extremely frustrating battle for all of us and we’d like to express our appreciation for the overwhelming support we’ve received from our consumers – some of whom were with us in court this week,” BATSA’s Johnny Moloto says.
“We believe consumers have the right to access the brands of their choice, and that businesses and individuals have a right to earn an honest living. This is why we have taken the legal route, after it became clear we had exhausted every other avenue.”
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Winde says his cabinet will also motivate for alcohol to be sold domestically. According to province's latest data metro hospitals are 69% full, down from 71% the week before.
On Friday, the Department of Cooperative Governance and Traditional Affairs filed its answering affidavit in Fita’s application to appeal the ban on tobacco product sales.
Fita chairperson Sinenhlanhla Mnguni says they’re still studying Cogta’s response.
Tobacco, alcohol industries bemoan another week of lost revenue by Nokukhanya Mntambo on Scribd
But agricultural body Agri SA says it won’t be pursuing any legal action against government but admits the cost of the ban has been dire.
“The ban on alcohol is causing a lot of damage in our industry, including the wine industry and the beer industry as well and what Agri SA would like is for government to review the ban,” says Agri SA’s Mihlali Xhala.
“The country has already lost R13 billion on investments just this week alone based on the alcohol ban and the wine industry has already lost R3.3 billion in sales, revenue just over the past twelve weeks.”
Government continues to stand by its decision as the country enters its Covid-19 peak.
Listen to Mihlali Xhala below:
