South Africa to ban duty-free tobacco within three months

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In a move described as ?a nightmare for the industry?, South Africa plans to ban duty-free tobacco sales in the next three months, under a bill that is being pushed through parliament

In a move described as ?a nightmare for the industry?, South Africa plans to ban duty-free tobacco sales in the next three months, under a bill that is being pushed through parliament. The move is being vigorously opposed by the Big Five duty-free operator, led by Gebr Heinemann, Weitnauer through its ship chandling business, Tourvest as well as the International Travel Retail Confederation (ITRC).

The bill, an amendment to the Tobacco Product Control Act of 1993, was published on October 16, with a 30-day consultation period for parties to submit comments or objections. It proposes a ban on all advertising or even display of tobacco in the country, and on duty-free, it states: ?The sale of tax- and duty-free products will be prohibited within three months of the act being passed.?

ITRC director-general Keith Spinks said: ?This shows that concerns over the World Health Organisation's proposed ban on duty-free tobacco haven't gone away. In fact, they're very real. This could set a terrible precedent for the rest of Africa and other states that are considering action on duty-free tobacco. The ITRC will make a submission to South Africa on behalf of the industry, outlining our argument that banning duty-free tobacco won't achieve any of the aims they are seeking, such as curbing youth smoking or reducing smuggling. We need a short, sharp, effective campaign and we need industry support.? Spinks added that if South Africa does proceed with the ban, its strong influence in regional politics could persuade other African nations to follow. 

Gebr Heinemann owner Claus Heinemann described the proposals as ?unacceptable?. The Big Five operator is contacting the finance ministry and airport authority to underline the serious financial consequences of banning a category that accounts for 25% of sales at South Africa's main airports.