Tobacco retailers vent about their problems; want due consultation

• Want proposed ban of sale of cigarettes in loose form and within 100 metres of schools, religious places withdrawn
• Cigarette industry is the biggest contributor to government revenue
• Urge Govt. to deal with the illegal cigarettes, drugs and beedi
• Want all unlawful enforcements and harassment of traders who are involved in carrying out their legal businesses

The Tobacco Retailers Association (TRA) yesterday came out in unison to air its grievances over prospects of a further dip in business owing to what it sees as impending irrational and unfair regulations by the Health Ministry. 

The TRA members, who include tea boutiques, eateries and grocery shops, said the sale of cigarettes to those above 21 years of age helps to push their primary business of selling food, etc. and further restrictions would have a serious impact. 

There are around 125,000 retailers island-wide who are involved in the sale of tobacco products, which include legal cigarettes. The TRA represents around 7,500 such retailers. The association said it was formed in 2017 in the face of many unlawful enforcements and other challenges, which impacted its members’ businesses and it felt the need to come together with one voice to speak on behalf of its traders. 

Its Secretary Nilantha Costa at a news conference said members had been carrying out their businesses, which includes the sale of cigarettes among other consumer products, in a legal manner for many years. “We have always operated our businesses in compliance with the law of the land, by ensuring that no one is allowed to smoke within our shops, not advertising cigarettes in our shops and not selling tobacco products to persons under the age of 21,” the association said in a statement.

“In the past we could generate a good income, support many livelihoods and be successful businessmen in our own right within our own communities. However, this changed drastically in 2016, when the Government decided to increase the taxes on legal cigarettes without taking the plight of our traders into account. Our sales fell drastically almost overnight and many of us felt the economic pressures of this increase, as many consumers started to shift towards illegal or smuggled cigarettes. 

“Tobacco traders in Sri Lanka are finding it increasingly difficult to carry out their legal businesses, selling a legal product because of the various unfair laws and unlawful enforcements by various government authorities. The most recent is the Government’s proposal to introduce laws banning the sale of cigarettes within a 100-metre radius of schools and other establishments frequented by persons who are under the age of 21 and the sale of cigarettes in single stick form. Such a move will put many traders out of business. We expect around 10,000 traders in Colombo alone to be impacted negatively as a result of this move.” The TRA said the sale of tobacco or cigarettes was a vital part of its industry not only because it generates direct revenue to traders but also because it creates sizeable foot traffic to outlets. A consumer who walks into a shop to buy a cigarette often buys a cup of tea, soft drink, bun or any other food item, which means retailers generate more income than if they were to merely sell a cigarette. Most consumers would come to an outlet three or four times a day. Losing this means that many traders will not just lose revenue but most will go out of business.

“We have spoken to the President and the Prime Minister, handed over petitions highlighting our plight, but they have all fallen on deaf ears. This is why we wanted to come to the media to highlight this issue and call on the relevant authorities to look into all stakeholders who will be impacted by such laws. We want to know why certain authorities are keen to disrupt the local economy by impacting the small and medium-scale traders,” said the association. 

“These same people are turning a blind eye to the illegal cigarettes and drugs that are being peddled by various unsavoury individuals not just impacting our livelihoods but targeting young children. If they are serious about reducing youth smoking and the addiction to drugs, they should be addressing these issues instead of attacking legal businesses and industries.

“As citizens of Sri Lanka, we are not against the Government regulating the tobacco industry. We believe it is the right thing to do. However, what we see now is the destruction of a legal business that pays a lot of tax to the Government in the disguise of regulation. This is also another opportunity for certain authorities to harass our traders through various unlawful enforcements. We also like to draw your attention to the fact that the legal cigarette industry is the biggest contributor to government revenue. “We hear that after the big tax hike in 2016, the Government lost a significant portion of the revenue they stood to earn from this sector. Instead, to cover this shortfall we see the Government increasing taxes on the common man. So in a roundabout way, as citizens, we are doubly penalised.” 

The TRA said its requests from the Government were:

To stop the activities by vested parties to destroy legal businesses by introducing “impractical and unfair laws” that will help cigarette smugglers and drug peddlers by pushing consumers to consume such products

Stop all unlawful enforcements and harassment of traders who are involved in carrying out their legal businesses

Take strict action against smugglers of cigarettes and traders who peddle these products to children.