Batsa abandons fighting ban in court

BRITISH American Tobacco SA (Batsa) has decided not to launch a legal challenge to the country’s current ban on cigarette sales, but to instead pursue further talks with the government.

Batsa, the regional division of the world’s second largest tobacco firm, said: “Noting President Cyril Ramaphosa’s public statement of May 4, as a business we have taken the decision not to pursue legal action at this stage but, instead, to pursue further discussions with the government on the formulation and application of the regulations under the Covid-19 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.”

The cigarette ban has been one of the most contentious aspects of the government’s response to the Covid19 crisis.

Batsa said the ban was threatening the legal tobacco economy, and called on the government to strike it off the Level 4 lockdown regulations.

“The significant rise in the illicit trade of tobacco during the lockdown continues to be of great concern and threatens the livelihood of many people who depend on legitimate businesses to sustain themselves.

“The statement yesterday from SA Revenue Service commissioner Edward Kieswetter that the service has ‘clear evidence’ the illicit economy is ‘thriving’ and that there could be a shortfall of R285 billion in tax revenues this year lays bare the challenge facing the government, businesses and all South Africans.

“While Batsa supports the government’s effort to prevent the spread of the virus, we believe in the reopening of the legal, taxed and regulated tobacco market as part of the solution.”