British American Tobacco (BAT), the country’s largest tobacco company, het kleinkoppie getrek and on Wednesday dropped its plans to go to court to force the government to unban entjie sales during the Covid-19 lockdown.
BAT said it took the decision after receiving a formal response to a letter it sent to the National Command Council on 30 April.
The letter singled out Minister Dr. Nkosazana Dlamini Zuma, accusing her of being behind the decision to ban the sale.
BAT said the decision was bizarre.
“Having considered the response from the government and noting President Cyril Ramaphosa’s public statement of Monday, 4 May, as a business, we have taken the decision not to pursue legal action at this stage but, instead, to pursue further discussions with 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,” BAT said in the statement.
However, BAT, just like its competitors under the umbrella of Fair Trade Independent Tobacco Association (FITA), continued to raise concerns that while the ban is still in place, the illicit tobacco trade is thriving at the expense of legal traders.
SARS Commissioner Edward Kieswetter this week said the tax company has “clear evidence” that the illicit economy is “thriving” and that there could be a shortfall of R285 billion in tax revenues this year.
BAT says further: “Cigarettes should only be sold in established retail outlets where the government’s correct social distancing guidelines can be enforced.
“At the moment, smokers are putting themselves and their households at further risk of the virus by moving around in search of cigarettes being sold by illegal traders,” said BAT.
Meanwhile, the government has until Friday to file responding papers to FITA’s court application which seeks to reverse the ban on cigarette and tobacco sales.
FITA argued that the decision was not well thought out.
Government has indicated it will oppose the application.