New Offence in SA Smoking Laws Targets Tobacco Sales Below Trade Price

South Africa is one step closer to revamping its smoking laws, and this time, the government and key stakeholders are united on at least one front—clamping down on underpriced tobacco sales.

At the heart of this development is a push to criminalise the sale of tobacco products below the trade-discounted price. The penalty? Up to 15 years in prison.

The proposal, now backed by all parties represented at the National Economic Development and Labour Council (Nedlac)—including government, labour, business, and community groups—seeks to fight back against one of the more subtle tactics used by illicit tobacco traders: pricing manipulation.

Why Price Matters in the Tobacco Trade

Selling below the trade-discounted price is not just a pricing issue—it’s a red flag. This reduced price is typically reserved for bulk buyers like wholesalers. When retailers or sellers go below this level, it creates an uneven playing field and could entice more buyers, making tobacco products appear more accessible or affordable.

Critically, this pricing strategy is commonly used in the illicit cigarette trade, which continues to plague South Africa’s tobacco market. By turning this practice into a punishable offence under Section 16(4) of the Tobacco Products and Electronic Delivery Systems Control Bill, the government aims to undermine this tactic and tighten market regulation.

Wider Crackdown on Smoking and Vaping

This move is part of a larger bill designed to modernise South Africa’s outdated smoking laws. Some of the major changes proposed include:

• Banning smoking in all indoor public areas and specific outdoor zones.

• Prohibiting advertising, sponsorship, and vending machine sales of tobacco and vape products.

• Introducing plain packaging and stronger health warnings.

• Restricting the sale and display of tobacco and electronic delivery systems (vapes, e-cigarettes).

• Aligning legislation with World Health Organisation standards.

The bill was revived in July 2024 and has since undergone several rounds of consultation through Nedlac, which concluded in March 2025. While consensus exists on some points, several others remain hotly contested.

Pushback from Business and Communities

Despite agreement on pricing offences, stakeholders remain divided on other parts of the bill. One controversial clause initially banned smoking in any residence that also serves as a workplace—such as homes where domestic workers are employed or where tutoring takes place.

After intense negotiation, most Nedlac stakeholders agreed to revise the clause. The updated wording now bans smoking only during working hours and removes specific mention of “domestic employment” since it’s already covered under broader workplace definitions. However, community representatives rejected this change, calling it impractical.

Another point of disagreement was a business-led proposal to allow vapes and other electronic delivery systems in designated smoking areas (up to 25% of a venue). This was overwhelmingly rejected due to health risks tied to second-hand vapour exposure.

What’s Next for the Bill?

The bill is still under consideration by the Portfolio Committee on Health, which recently reviewed feedback from Nedlac. While all parties agree that South Africa’s smoking laws are overdue for reform, economic impact, the scope of government power, and practical implementation remain sticking points.

Yet, the shared backing for stricter pricing laws could signal a rare moment of unity in what has otherwise been a contentious legislative process.

With prison sentences of up to 15 years now on the table for undercutting tobacco prices, it’s clear that the government is not taking the illicit trade lightly. As South Africa works to align its public health policies with global standards, the 2025 smoking law reforms may be among the most significant yet—though not without debate.

{Source: BusinessTech}

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