The Union of Tobacconists’ Associations of Spain has shown its total rejection of a possible reduction in points of sale and restrictive changes in the minimum age of access and sale, which are being debated on the eve of COP11 of the Framework Convention for Tobacco Control. The employers’ association warns that a contraction of the retail network could “feed the illicit market” and cause the closure of tobacco shops, especially in small municipalities, in a context in which seizures and cases of irregular sales are already being recorded.
The sector explains the economic dimension of a network of more than 13,000 tobacco shops (mostly family businesses) and remembers that licenses can cost up to 150,000 euros. In his opinion, limiting the number of licenses would introduce a “hardly reversible” disruption in retail distribution, with an impact on the viability of thousands of points of sale.
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Reducing licenses means fewer legal outlets. According to the employers’ association, this would push part of the buyers towards illegal markets, which in certain cities already represent around 20% of consumption. The result, they warn, would be less taxes and more risk of sales to minors.
Job destruction and boost to the illegal market
The international debate at COP11 which includes, among other things to be discussed, the possibility of establishing limits on the number of licenses, reviewing the minimum age or implementing “restriction by generation” models (prohibition of sales to those born after a certain date) anticipates even tougher regulation for a sector that is already quite punished.
The European Union comes with a stricter common position, according to community sources, although any decision will later require legal development at European level and, where appropriate, the adaptation of Spanish legislation.
Another of the axes of the discussion involves the elimination of subsidies for tobacco cultivation, in line with Article 17 of the Convention. The matter fully affects Estremadurawhich is the main producing area in Spain, in which this cut would not only affect its economy, but also thousands of jobs, in addition to agricultural income.
Faced with the trade approach, public health and environmental organizations demand to go “beyond the current framework” due to the health and environmental impact of tobacco and associated waste.
The organizations are asking to raise taxes, improve traceability and strengthen controls, reduce the exposure of minors and cut surreptitious advertising, also on the internet. Furthermore, any restriction will only work if it is applied with three measures at the same time, since the more customs intelligence in parcels and ports, the more inspections in distribution and real traceability of the product. Without this “triangle,” they warn, cheap and illegal remittances will grow.