Economy

Debate over Tobacco Control Bill heightens as Haabazoka fears rise of illicit trade, loss of jobs

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Economist, Lubinda Haabazoka, has warned that illicit cigarette trade will rise if Zambia’s proposed Tobacco Control Bill is enacted, saying the legislation risked undermining both public health and government revenue.

Haabazoka, a former president of the Economics Association of Zambia, said in a video statement issued in Lusaka on Wednesday that the bill was inappropriate for a growing economy and would negatively impact the entire tobacco value chain, from seedling sellers to exporters.

“Thousands of rural farmers in Central, Southern and Eastern provinces would lose their livelihoods,” he said.

He added that cigarette manufacturers and related firms could be forced to retrench workers, and warned that the government risked losing significant excise tax revenue from tobacco products.

Read More: Traders push for urgent passage of tobacco control bill

Haabazoka said restricting the industry could increase pressure on social cash transfer programmes as displaced workers seek alternative support, and argued that foreign exchange inflows would drop if tobacco export volumes decline.

“Neighbouring countries such as Zimbabwe and Malawi could exploit Zambia’s restrictions by supplying tobacco illegally,” he said.

He maintained that Zambia “is not a smoking country” and does not face a national crisis that warrants prohibitive tobacco measures.

Haabazoka suggested that awareness campaigns would be more effective than restrictive laws.

“Prohibitive measures would only encourage unregulated consumption and harm both the economy and public health,” he said.

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