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#OFMBusinessHour: Proposed new Tobacco Bill might cause job losses

───   TSHEHLA KOTELI 15:52 Wed, 12 Oct 2022

#OFMBusinessHour: Proposed new Tobacco Bill might cause job losses  | News Article

The newly proposed Tobacco Bill, which will limit smokers in areas where they can smoke freely, might lead to tobacco companies retrenching employees as the Bill will result in shrinkage of the demands of the product.

The Chairperson for the South African Tobacco Organisation (SA Tobacco), Raees Saint, says the tobacco market will shrink should the new Bill be put in place, therefore companies will have to let some of their employees go as there won’t be making as much money as before the new Bill. 


The proposed Bill also determines that vapers will be limited regarding where they can vape. Saint believes the vaping industry will also feel the pinch, as vaping products are relatively expensive. The demand for it will also decrease as people will not be vaping as much.

ALSO READ: Ban on indoor public smoking among changes as tobacco plan nears law

The Citizen previously reported that the Control of Tobacco Products and Electronic Delivery Systems Bill was formally tabled in Parliament by the Health Minister, Joe Phaahla, in late September 2022. The Bill seeks to repeal the current Tobacco Products Control Act. The Bill proposes, among others, 100% smoke-free indoors and a limited number of outdoor areas, a ban on the sale of cigarettes in vending machines, and a bigger emphasis on warning signage on cigarette packaging. It also for the first time regulates e-cigarettes and other new-generation products. In addition, the Bill seeks to strengthen the country’s public health measures and align them with the World Health Organisation (WHO).

Saint explains that several facts play a role in how the tobacco industry contributes to the economy of South Africa. “The taxes that contribute to the economy through tobacco sales are quite a lot,” he adds. Also, the industry does play a role when it comes to employment. He believes the proposed Bill will more or less make people smoke less, which will decrease the sales of tobacco, and ultimately there will be low returns of taxes from the industry.

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