24 September 2020 09:04 am Views - 261
By Ajith Perera
Recent media reports cites the Tobacco Regulatory Authority making an overture to a ban on single sticks of cigarettes, stating it is a gateway to other narcotic drugs and continuous smoking. The proposal adds that retailers would only be allowed to sell cigarette packs containing 20 sticks to customers.
Single stick sales are banned in a number of countries, but these are primarily developed markets boasting significant per capita income. Close to home, the government of India has mulled a ban of single sticks for close to a decade but it is still to do so. There has been incessant debate in that country over the effectiveness of a stick sales ban to deter youngsters from taking up the habit and drive cessation.A key consideration propelled by some medical professionals in India is once smokers are required to purchase a pack, they then end up smoking more.
The same consideration is relevant to Sri Lanka. Here at home, cigarettes are very expensive but smoking incidence still sits at 25 percent due to a burgeoning illicit market and beedis, in addition to legal sticks. Accordingly, a ban on stick sales would not only drive consumers and retailers underground due to the high prevalence of illicit, but also significantly impact revenues earned by government from smokers.
We mustn’t push the envelope too far during a volatile time period as now with such propositions. If implemented, it will negate revenues in the medium-term at a time revenue is paramount for Sri Lanka. It isprudent instead to tighten controls such as points of access to minors and combat prevalence of illicit.
As alluded previously, Sri Lanka is still a developing market with vast majority of consumers leading uncomplex lives earning just about and above the minimum wage. This is why many FMCGs from biscuits to washing powder have launched ‘buddy’ products in the market. These are extremely popular amongst lower income segments with limited purchasing power. Draconian regulations will impact consumers and even small traders and businesses.
In Pakistan, the government failed to implement such a ban and sales went on unchecked at most small-scale retail outlets, with only formal outlets conforming with the law. The sales at outlets had mushroomed once again after over 700,000 small-scale businesses under the All Pakistan Cigarette Pan and Beverage Retailers’ Association protested the impact on livelihoods and daily income due to the stick sales ban.
Sri Lanka has thousands of cigarettes retailers supporting hundreds of thousands of livelihoods. Authorities need to take into consideration the impact such a ban will have on them.In addition,how will the state itself make up for the shortfall in revenue.The current global milieu combined with micro factors present a less conducive environment for the country to consider a ban on stick sales now.Sri Lanka still sits far behind that point in the development curve where It could freely consider a stick sales ban given our market dynamics.Doing it for pageantry over well-conceived purpose will achieve little or nothing.
(The writer is a retired Administration, Shipping and Maritime Security Consultant in Sri Lanka and the Middle East)