SOUTH AFRICA
Firms take court action over tobacco ban

South African tobacco firms and associations are taking court action over the ban on cigarette sales being maintained, despite the lockdown level being reduced, reports Reuters.

The South African lockdown level will move to a more eased level 3 lockdown, in a five-level system, on 1 June. This will allow most economic sectors, including mining and manufacturing, to fully resume operations. Alcohol will become available for purchase to be consumed at home, but the ban on cigarettes will be maintained.
According to the report, many big tobacco companies have spoken out against the ban. British American Tobacco South Africa (BATSA) announced 29 May that it is commencing urgent legal proceedings to challenge the government’s decision to extend the ban on tobacco sales. BATSA, which produces cigarette brands such as Dunhill and Lucky Strike, has said the ban could increase the sales of illicit tobacco, as smokers are more likely to buy from underground traders.
BATSA is the leading tobacco manufacturing company in South Africa, holding 78 per cent of the legal cigarette market share. The company said in a statement that the ban is, “robbing the government of much needed excise tax contributions… and threatening thousands of jobs.” Japan Tobacco International is also taking part in the legal challenge.
In a separate law suit, the Fair-Trade Independent Tobacco Association (FITA) took the government to court in early May, in regards to the continued ban, and its lawsuit will be heard at Pretoria High Court from 9 June.

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