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Businesses fear tobacco bill could choke industry

mm by Staff Writer
October 5, 2021
in News
Reading Time: 6 mins read
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Businesses fear tobacco bill could choke industry
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Business Botswana has accused the Ministry of Health and Wellness (MoH) of excluding them from formulation of the controversial tobacco control bill.

Business Botswana’s position is that the bill will have dire consequences on its members because it focuses mainly on legal traders of tobacco and not on the black market of tobacco.

The bill seeks to repeal and re-enact the Control of Smoking Act in order to align it to the WHO Framework Convention on Tobacco Control (FCTC) to which Botswana is a party. MoH says the existing law falls short of provisions set by the FCTC.

However, Business Botswana holds that MoH is using FCTC to erode the principle of consultation.

While Business Botswana is not against regulation, the voice of the private sector has made several attempts to engage with the government in the process of developing the law in vain, it says.

Business Botswana is perturbed by insertion of a clause that bars a public body from supporting, endorsing or accepting any proposals, drafts or offers of assistance with development or implementation of any tobacco control policies.

It argues that while the government says it is trying to tackle smuggling, the bill seems targeted at industry players who operate by the book and employ thousands of people.

Key points of the bill include banning smoking sections of hotels which are among the sectors hardest hit by COVID-19 when the government moved imposed travel restrictions to contain the spread of the virus. Business Botswana’s position is that such a law will harm hotels more by dragging their sales down.

Another clause aims to compel packaging of smoke packs to include pictures depicting dangers of smoking. Business Botswana says this will drive up production costs that will consequently be passed on to the consumer.

It argues that this may give rise to illegal trading on the black market, resulting in losses to the government in reduced taxes as illegal alcohol trading.

BURS revealed that tobacco levy fell from P11.6 million in March 2020 to P1.9 million April 2020.

The bill also proposes that anyone selling tobacco products should have a permit solely for that market. Cigarettes are currently sold under licences of general trading. It is feared that the bill will increase bureaucracy and squeeze out small businesses that may fail to maintain their licences.

Business Botswana has accused the Ministry of Health and Wellness (MoH) of excluding them from formulation of the controversial tobacco control bill. 

Business Botswana’s position is that the bill will have dire consequences on its members because it focuses mainly on legal traders of tobacco and not on the black market of tobacco.

The bill seeks to repeal and re-enact the Control of Smoking Act in order to align it to the WHO Framework Convention on Tobacco Control (FCTC) to which Botswana is a party. MoH says the existing law falls short of provisions set by the FCTC.

However, Business Botswana holds that MoH is using FCTC to erode the principle of consultation.

While Business Botswana is not against regulation, the voice of the private sector has made several attempts to engage with the government in the process of developing the law in vain, it says.

Business Botswana is perturbed by insertion of a clause that bars a public body from supporting, endorsing or accepting any proposals, drafts or offers of assistance with development or implementation of any tobacco control policies.

It argues that while the government says it is trying to tackle smuggling, the bill seems targeted at industry players who operate by the book and employ thousands of people.

Key points of the bill include banning smoking sections of hotels which are among the sectors hardest hit by COVID-19 when the government moved imposed travel restrictions to contain the spread of the virus. Business Botswana’s position is that such a law will harm hotels more by dragging their sales down.

Another clause aims to compel packaging of smoke packs to include pictures depicting dangers of smoking. Business Botswana says this will drive up production costs that will consequently be passed on to the consumer.

It argues that this may give rise to illegal trading on the black market, resulting in losses to the government in reduced taxes as illegal alcohol trading.

BURS revealed that tobacco levy fell from P11.6 million in March 2020 to P1.9 million April 2020.

The bill also proposes that anyone selling tobacco products should have a permit solely for that market. Cigarettes are currently sold under licences of general trading. It is feared that the bill will increase bureaucracy and squeeze out small businesses that may fail to maintain their licences.

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