BAT petitions court over govt restrictions on tobacco

Dec 18, 2019

The firm asserts that gazettement of the regulations was done in bad faith

Cigarette manufacturer British American Tobacco (BAT) Uganda Ltd and the government are rowing over the Tobacco Control Regulations, 2019.

The dispute is now a subject of court action, after the manufacturer petitioned court, saying the regulations are illogical. BAT asserts that industry stakeholders were not consulted when the regulations were drafted.

An application for judicial review was filed at High Court Kampala civil division on December 6. Listed as respondents are the Minister of Health and the government's chief legal representative and adviser, the Attorney General (AG).

Judicial review is conducted by the High Court to scrutinise legality of processes that resulted in decisions taken by tribunals or administrative bodies.

On July 28, 2015, Parliament enacted the Tobacco Control Act, which came into force on May 18, 2016.

One of the tough rules, which come into effect February 1 next year, is an absolute prohibition on the advertisement, as well as a ban on display of cigarette packs.

Section 45 of the Act mandates the minister to consult the Tobacco Control Committee, to make rules of engagement in the Act's implementation.

Subsequently, last year, the minister in consultation with the committee, initiated the process of developing the regulations.

However, BAT wants the court to quash the ordinance, saying it is illegal. The manufacturer seeks to have the minister forced to make a comprehensive list of guidelines.

"An order of mandamus be issued to compel the first respondent (minister) to make regulations which take into account relevant considerations and views of the applicant and/or the tobacco industry through a balanced, credible and transparent consultative process," the petition states.

BAT managing director Mathiu Kiunjuri has sworn an affidavit, saying the minister made harsh regulations without following the requisite balanced, credible and consultative process.

Kiunjuri states that the company's business operations of importation, sales, distribution and marketing, have been dominant in over 90 years of existence.

He says BAT is a Uganda Securities Exchange-listed company with 1,250 shareholders, 2,000 wholesalers, and 3,000 retailers.

Kiunjuri emphasises that the company is the single largest buyer of Uganda tobacco leaf, with 13,500 tobacco farmers.

Court document dated April 17, 2019, shows BAT and Leaf Tobacco Commodities Limited, submitted stakeholder sentiments to the Trade and Industry ministry.

Kiunjuri says the submissions were not on the prompting of government but a gesture of corporate citizen.

The boss laments that on August 23, the government proceeded to make TCR without engagement and input of the tobacco-related companies. 

Snubbed

Kiunjuri states that gazettement of the regulations, dated September 6, 2019, was done in bad faith. He says government snubbed BAT efforts to convene an engagement meeting to defuse the tension.

The boss asserts that BAT is an avid supporter of regulation of tobacco use and the public health repercussions.

"The applicant agrees that the manufacture, distribution and sale of tobacco products should be regulated and based on balanced and evidence-based regulation that measurably reduces the public health impacts of tobacco products," says Kiunjuri.

Details of regulations 

100% smoke-free public areas: smoking outlawed within 50 meters of public spaces

A complete ban on tobacco advertising, promotion and sponsorship (TAPS), as well as on cigarette pack displays at the point of sale.

No sale of cigarettes in public places such as healthcare facilities, cinemas, Police stations, Prisons, or within 50 meters of educational institutions or places where children are cared for.

No sale of tobacco products to any person below 21 years of age.

No sale of duty-free tobacco products.

A complete ban on shisha (water pipes), electronic cigarettes and chewable tobacco products.

Massive graphic health warnings, covering 65% of the pack to inform the public of the cigarette smoking dangers.

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