Activist slams regional tobacco institute

Maranyane Ngwanaamotho | Wednesday March 12, 2014 15:31

TISA recently released a statement criticising the government of Botswana for the levy, which they say, will eradicate trade harmonisation and hamper free flow of goods within the SACU community.

TISA said that the levy would create a conducive environment for drug smuggling in Botswana, as more and more traders will escape high costs of compliance by illegally trading at cheaper prices on the black market.

It said government will lose out on revenue and the legal tobacco industry will lose market share.

In response to the statement, Mbongwe said that it should be noted that TISA is part of a global movement that produces and promotes a product that has been scientifically proven to be highly addictive, harmful, deadly and gives rise to a variety of social ills, including increased poverty.

She stated that Botswana is party to the Framework Convention on Tobacco Control (FCTC) that aims at reducing supply and demand of tobacco products and levies are part of the prescribed measures.

She said that tax increases are one of the most effective ways to reduce smoking and tobacco use, especially among the youth and low-income groups.

She said research has shown that every 10 percent increase in cigarettes prices reduces youth smoking by about seven percent and total cigarette consumption by about four percent.

Research has also shown that countries that have significantly increased their cigarette tax have enjoyed substantial increases in revenue, in addition to reducing smoking. Mbongwe stated that higher tobacco taxes save money by reducing tobacco-related health care costs.

“By introducing this levy, the government of Botswana can realise even greater health benefits and cost saving by allocating some of the revenue to programmes that prevent children, the youth and low income groups from smoking and helps smokers quit,” she said.

She dismissed claims that tobacco taxes are the primary reason for cigarette smuggling and cigarette tax avoidance.

“Levels of smuggling are generally higher with slack law enforcement and criminal prosecution, weak penalties for smuggling crimes, and corruption in a country.

“This shameful statement is driven by TISA’s need to defend their market territory and to make profits at the expense of public health,” she asserted.

Mbongwe said TISA cannot claim that there were no consultations when the levy was introduce because the FCTC provides for the sovereign right of all parties to determine and establish their own taxation policies.

Moreover, SACU provisions on free movement of domestic products, says that member states shall have the right to impose restrictions on imports and exports in accordance with national laws and regulations for the protection of human health, the environment and public morals.

“The blatant misuse of SACU Trade Agreements by TISA is a shameful act that should be condemned by all member states,” Mbongwe asserted.

She is troubled that TISA recently issued a false statement that it has a Memorandum of Understanding (MoU) with Botswana Unified Revenue Service (BURS) to curb illicit trade in tobacco.

She said it emerged in a meeting between BURS and ATN that such a MoU was terminated in February last year.