Fita represents 80% of legitimate and licensed cigarette manufacturers in Southern Africa.
“This decision was not taken lightly and we had hoped that a logical solution in the best interests of all concerned would be arrived at without the need for litigation,” Fita Chairperson SinenhlanhlaMnguni said in a statement.
“The simple truth is that the current situation cannot be endured for much longer by the various role-players along the tobacco industry value chain without severe consequences for all,” he said.
“This includes farm workers, factory workers, informal traders, and the many other ordinary South Africans who rely on the tobacco industry for a living, and whose livelihoods are currently at stake. Allowing the current situation to continue indefinitely will in all likelihood lead to job losses and/or loss of income for many along the tobacco industry value chain,” he added.
He said their request was that government allowed — at the least — the distribution and sale of cigarettes at retail stores, spaza shops and filling stations, where citizens are currently permitted to purchase what has been classified as essential goods.
“This would give the economy a much-needed boost and avoid a situation where our citizens, out of desperation, contravene the regulations of the lockdown en masse,” Mnguni’s statement read.
He said the “simple truth” was that the current regulations would hurt the industry and “cannot be endured for much longer by the various role players along the tobacco industry value chain without severe consequences for all”.
Mnguni said South Africans were resorting to acts of criminality to procure cigarettes.
“We are also seeing the illicit trade flourish whilst the legitimate tobacco industry is prevented from participating.
]“The long and short of this all is that the regulations have not stopped people from buying cigarettes during the lockdown period. People are sourcing cigarettes and other goods from underground markets to the detriment of the fiscus,” he said.
