Brian Sokutu
Senior Print Journalist
2 minute read
8 Oct 2020
4:58 am

Batsa comes up with plan to make legal cigarettes affordable

Brian Sokutu

In the 2020-21 budget, government announced the taxation of tobacco sticks at a rate equal to 75% of excise on cigarettes.

Picture iStock

Against a background of a negative impact on the country’s tobacco industry due to months of Covid-19 lockdowns, British American Tobacco South Africa (Batsa) has come up with a set of recommendations to government, which include an excise freeze on factory-manufactured cigarettes aimed at making it possible for consumers to afford legal cigarettes. According to an independent study by the University of Cape Town’s (UCT) research unit on the economics of excisable products, the duty not paid (DNP) cigarette market grew by 104% during lockdown. Batsa said its proposals would significantly reconfigure the market – forecasting a R5.8 billion sticks...