Big tobacco urges government action to curb illicit trade and promote safer products

BIG tobacco industry players in South Africa believe the government can speed up transition towards less harmful products and effectively end trade in illicit cigarettes with better regulatory and policy attention to bad practices across the sector.

- TAWANDA KAROMBO

Tobacco cigarette manufacturers British American Tobacco South Africa (Batsa) and Polaris Manufacturing (formerly Gold Leaf Tobacco Corporation) last week traded accusations of fueling trade in illicit tobacco cigarettes through under-pricing and imports.

This comes despite the industry touting new tobacco products such as pouches and e-cigarettes as key in reducing the harm caused by combustion cigarettes.

The South African tobacco industry appears to be pulling in the same direction in demanding a conducive regulatory and policy framework, including favourable and separate taxation for new tobacco cigarettes.

They say this will unlock fresh investments into the new tobacco products and encourage transition from combustible cigarettes that experts say are harmful.

This comes against the backdrop of growing adoption for the new products, according to Tommaso Di Giovanni, vice president for international engagements at Philip Morris International, who on Monday said uptake in South African cities such as Cape Town was picking up.

"We do see some product adoption in Cape Town. Some of these products like vapors are being adopted in Cape Town," he said in an interview.