OPINION | Proposed new tobacco regulations risk more jobs and livelihoods going up in smoke | Business

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Instead of proposing draconian regulations, the proper implementation of more moderate legislation might achieve better outcomes, says Diane Chakim. | News24_Business

Instead of proposing draconian regulations, the proper implementation of more moderate legislation might achieve better outcomes, saysI can feel the sense of excitement in Cape Town, as the city prepares to welcome tourists for its first summer free of Covid-19 restrictions.

Who can forget Minister Patel’s bizarre lockdown clothing rules? For a time, until government reversed some of the most absurd regulations, South African retailers were banned from selling sandals, and could only sell “closed toe” shoes, and likewise with sale of short-sleeved shirts, unless they were promoted or displayed to be worn under jackets or jerseys. We couldn’t buy hot pies, or cooked Woolies chickens.

These cigarettes are called illicit because the manufacturers evade the payment of excise taxes to SARS. So smokers still managed to buy product, but government lost billions in tax. Unfortunately, the effects of the tobacco ban, which was finally lifted in August 2020, have been irreversible and have entrenched the illicit trade which is now sitting at approximately 54%, according to Professor Corné van Walbeek from UCT’s Research Unit on the Economics of Excisable Products .

Let’s look at some of the provisions in the bill, and the unintended consequences of these proposed new laws. While Sturks store on Greenmarket Square is gone forever, I do own Casa Tabacs, another tobacco shop. As a specialist tobacco retailer, I can’t imagine what my store will look like if I can’t display any of the products that I sell.

 

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_Business ZA is simultaneously becoming a police state for the law abiding and a paradise for the most violent criminals.

TonyBeamish _Business Smoking is a coping mechanism - if you want to stop identify the cause and work on it or find another coping mechanism....quite simple actually

_Business This is what happens when political parties are funded by the illicit trade of tobacco. They couldn’t quite wipe out the legal market with their ill considered ban during the lockdown. They are now looking to finish off the job with these new regulations.

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