Statement By Jonathan D’Souza, Managing Director BAT Uganda Decided to be objective and look at the facts - Now I want to know more, so should you!

1. By Jonathan D’Souza, Managing Director BAT Uganda
World No Tobacco Day is marked every year on May 31 and sees many groups joining
forces under a campaign banner to reduce the level of tobacco product consumption in
the world.
We have always supported open and honest debates that include all sides regarding the
important topic of public health and it is right and proper that the tobacco industry‟s
critics have opportunities to voice their views regarding tobacco control.
However, while some of the industry‟s critics are concerned with improving public
health, a vocal minority seem more concerned with simply driving the tobacco industry
out of business, assuming this will see an end to smoking around the world overnight.
British American Tobacco believes these critics should be careful what they wish for.
This week, we pose the question, “What would a world with no legal tobacco industry
really look like?”
The reality is that adults that have made the conscious decision to smoke will continue to
do so. But instead of buying their 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. After all, prohibition didn‟t stop people drinking alcohol in America in the
1920s and we don‟t see why it would be any different for today‟s adults who choose to
smoke.
The tobacco industry is highly regulated and so it should be given the products we sell.
But the fact of the matter is that tobacco is a legal product and we are a legitimate
company who conducts 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
requirements.
In 2012, BAT Uganda contributed Shs72 billion in taxes to the government and brought
in over US$47 million in export earnings from our tobacco leaf export. During the year,
the Company in Uganda contracted 20,000 farmers, supporting them with free extension
advice delivered through over 100 field technicians, interest free loans of over Shs14
billion, and provided free seed for food crops after the tobacco harvest.
Unfortunately, the same cannot be said for the network of criminals ready and waiting to
step in and take over if the legitimate tobacco industry didn‟t exist. Many of these illegal
networks are very well organised and sophisticated transnational organisations able to
evade laws in each country and make significant profits. But, the way they conduct their
„business‟ is anything but legitimate.
According to the Framework Convention Alliance 2008, the combined global black
market for illegal tobacco accounted for 660 billion cigarette sales in 2012, making it

2. roughly equivalent in size to the world‟s third largest multinational tobacco “company”
by volume. In Uganda, the illegal tobacco market is estimated at between 15 to 20% of
the market. Far from being a victimless crime, illegal tobacco is sold by well-organized
criminal gangs, often with recognized links to terrorism.
These people don‟t abide by the law or follow government regulations, they don‟t pay
taxes, they don‟t care what‟s in their products, and the age of their customers is
irrelevant.
We encourage those critics who simply want to see an end to the tobacco industry to open
their eyes and see that the real tobacco problem is not the regulated and enforced legal
industry, but rather the unregulated and growing illegal black market. Cognisant of the
fact that tobacco smoking poses health risks to our customers, we have always supported
regulation for the industry that is sensible, balanced and enforceable for the benefit of all
stakeholders.
Times have changed and the approach to tobacco control must change too. If not, the
tobacco trade risks being handed on a plate to the underground and criminal market – a
free-for-all market that is unregulated, unenforced and untaxed.
E-Mail: Info_batug@bat.com
Tel: +256772200202