Repeal and Replace The Tobacco Act CAP 237 and the Tobacco Levy Act CAP 238 of the Laws of Zambia

Introduction

The Ministry of Agriculture intends to repeal and replace the Tobacco Act CAP 237 and the Tobacco Levy Act CAP 238 of the Laws of Zambia.

The proposed law reforms are based on the prevailing circumstances in the industry. The tobacco Act fails to respond to the business environment dictated by the free market economy arising from liberalisation of the economy.

Before privatisation, the tobacco industry in Zambia was financed by the Government, Banks and individuals. Tobacco buyers used to just come and buy the tobacco hence the focus of the Tobacco Act, CAP 237 of the Laws of Zambia on auctionable tobacco as opposed to non – autionable tobacco. As the industry progressed after privatisation in 1991, most tobacco operations were taken over by the private sector leading to growers failing to meet intended volumes set by the private buying companies. This led to the buyers starting to contract growers so as to meet set volume targets.

This change in business model in the tobacco industry is not supported by a matching legal framework hence the need for legal reforms.

Rationale

The rationale for repeal and replacement of the two pieces of legislation is to align the existing law with the current changes in the tobacco sector. From 1968, the has been numerous changes regarding how tobacco is produced and marketed with strong involvement of the private sector, which changes the old laws have not been aligned to.

The proposed repeal and replacement of the Tobacco Act and the Tobacco Levy Act will, therefore align the tobacco industry with the current business environment and facilitate growth in the sector through increased private sector participation.

This serves to inform the industry of the coming legal reforms. The Ministry of Agriculture and Tobacco Board of Zambia will soon commence undertaking a Regulatory Impact Assessment which will include consultation.

At this stage stakeholders with particular submissions may do so to the tobacco Board of Zambia. Stakeholders will be required to make further submissions once a draft RIA Report and draft bill is available. The draft RIA report and draft bill will be made available on this portal.