British American Tobacco case postponed until early August
The 'inexplicable" delay of another six weeks will cost the fiscus more than R1.4 billion in excise tax alone.
Minister of Cooperative Governance and Traditional Affairs Nkosazana Dlamini-Zuma. Photo: File
The ongoing legal feud between cigarette manufacturers and the government has taken a new turn as the case between British American Tobacco South Africa’s (Batsa) and the Minister of Cooperative Governance and Traditional Affairs Nkosazana Dlamini-Zuma has been delayed until 5 August.
The case was set to be heard on 30 June according to a statement by Batsa on Thursday.
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Batsa was arguing that the decision on the ban on cigarette sales is irrational and based on bad evidence.
On Friday morning however, the company said in a statement that it had received communication that ” the application being brought by it and others against the ban has been listed for August 5 and 6″.
The company said that all relevant parties had already agreed to the June hearing date as everyone had agreed that the matter was urgent.
“Instead, an email was received this morning stating that the case has been delayed by almost six weeks into the next legal term. Having received the extremely strong replying papers from the applicants, the State President and COGTA have done a total volte face and now want the matter to be heard on 5 and 6 August, this despite their acknowledgement that it is urgent,” Batsa said.
It call the delay “inexplicable” as the August hearing date will extend the ban on the sale of tobacco products to four and half months. Even the new six week delay will cost the fiscus more than R1.4 billion in excise tax alone, Batsa’s Johnny Moloto said.
“Thousands of jobs stand to be lost in the economy as criminality becomes the new normal. We are considering all our legal options and will be liaising directly with the government, as we had both previously agreed that the matter was urgent and needed to be heard next Tuesday.
“Postponing a case that has been agreed, by both sides, to be urgent is something that we believe is unprecedented and is very worrying.”
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