As the we marked the World No Tobacco Day 2013, the British American Tobacco (BAT) asks in this opinion contribution, “What would a world with no legal tobacco industry really look like?” Excerpt:
On
World No Tobacco Day 2013, British American Tobacco has issued a series of
images to illustrate what it believes the world would look like if the legal tobacco
industry was forced out of existence.
Kingsley
Wheaton, British American Tobacco’s Group Head of Corporate and Regulatory
Affairs, warned: “The reality is that people will continue to smoke. But
instead of buying legal taxed cigarettes, made by legitimate tobacco companies
and sold by reputable retailers, they’ll turn to black market sources to get what
they want.
“The
tobacco industry is highly regulated, sells a legal product and we have a
legitimate business. We conduct our business in a professional and responsible
way, abiding by the laws in all the countries we operate in, often going above
and beyond our legal obligations.
“Unfortunately
the same can’t be said for the sophisticated network of criminals ready and
waiting to step-in and take over if the legitimate tobacco industry didn’t
exist.”
The
global black market for tobacco accounted for 660 billion (Framework Convention
Alliance) cigarette sales in 2012, making it roughly equivalent in volume to the
world’s third largest multinational tobacco company. It is not a victimless
crime. Illegal tobacco is sold by well-organised criminal gangs, some of whom
have recognised links to terrorism.
Mr
Wheaton continued: “These people don’t abide by the law or follow government
regulation, they don’t pay taxes, they don’t care what’s in their products and they
happily sell to minors.
“If
we didn’t exist to supply tobacco products legally, traffickers would fill the
vacuum and this cannot be the outcome society wants.”
British
American Tobacco makes a long term commitment to sustainability; strives to
bring reduced harm products to market; continues to fight the illegal tobacco
trade; generates excise revenue; and provides employment and enhanced
livelihoods to hundreds of thousands of employees and suppliers. However, a world
with no legitimate tobacco industry would see an end to:
·
Significant investment in
research and development of reduced-risk tobacco products: There would be no
incentive for criminals to start doing this. In 2012 British American Tobacco alone
invested £171m in our research and development activities – part of our responsibility
to working towards reducing the health risks associated with our products.
·
Responsible product
marketing: We
are clear that children are not and will never be our audience. Our marketing
is aimed at informed adult smokers who are aware of the health risks associated
with tobacco use. But the same can’t be said for the criminals who are already
actively selling tobacco products outside schools, newsagents and playgrounds.
Black market cigarettes are also cheaper, making them more accessible to
children at pocket money prices.
·
Industry support to tackle
tobacco trafficking and associated criminality: We work closely with governments and
law enforcement agencies to tackle illegal tobacco. Europol, Interpol and the
FBI have stated that among those who traffic illegal tobacco some also deal in
money laundering, drugs, human trafficking and fund terrorist organisations. In
west Africa we collaborate with various government agencies including custom
agencies, consumer protection agencies and the Joint Port Control Unit (JPCU)
in tackling illicit trade in tobacco.
·
Product quality and
safety: It’s a worrying fact that illegal
cigarettes have been found to contain dead insects and animal excrement. We work tirelessly to manage the integrity of
our entire supply chain from the seed that’s put in the ground through to the
packets of our products sold on the shelves.
·
$200billion per year in
tax: That’s
the figure generated in tobacco taxes globally each year, more than seven times
the profit of the global industry. In West Africa alone, the tobacco industry has
generated more than $187million for governments, through income tax, excise and
VAT on tobacco products in 2012.
·
Fair treatment and prices
for farmers:
It’s very hard and dangerous for a farmer from a developing country to
negotiate prices with criminals. British American Tobacco offers contracts to
the 140,000 farmers we have direct relationships with, helping to provide
consistent revenue and fair prices. We also provide advice regarding
sustainable agricultural practices and crop rotation.
·
Millions of employees
would lose their jobs and have their livelihoods impacted: We create jobs and
support business in West Africa through our own workforce and through
entrepreneurs and employees involved in our supply chain. Our development of
the industry has led to economic opportunities for hundreds of thousands of
West Africans; from the workforce of our distributors, wholesalers and retailers, to suppliers of materials such as tobacco leaf farmers,
and providers of services such as haulage.
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