The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A prominent Bahamian cigar manufacturer and hotelier yesterday warned that "absolutely dreadful" legislative reforms will "put us out of business" if implemented.

Paolo Garzaroli, Graycliff Cigar Company's president, hitting out at the Tobacco Control Bill 2017, told Tribune Business: "The law will basically put us out of business if they try and implement it."

He cited the numerous "absolutely dreadful" restrictions imposed on retailers as outlined in the Bill, and urged the government to reconsider legislative proposals now circulated for stakeholder feedback.

"We can't do promotional events. The government calls us and says: 'Hey, why don't you bring your cigar roller and let people see we make cigars here?' We can't do that. Ninety per cent of the stuff that we do we won't be able to," said Mr Garzaroli of the Bill's consequences.

"If someone is in the out islands - it happens all the time - and they say can you send me a box on the boat or the plane, we can't do that. If they buy them, we can't ship it to them. They would have to go to a store, pay them, and I would have to ship it to the store.

"It would be illegal. It's a $100,000 fine and a year in prison for a first-time offence, and then $250,000 or five years for a second-time offender and continues to go up. It's ridiculous. If it was cigarettes I could understand that, but it's not cigarettes; it's cigars. Persons would not be allowed to touch a cigar until they pay for it."

Mr Garzaroli was highlighting a section of the Bill which states that: "A person shall not, for consideration, cause a tobacco product to be delivered or sent by mail unless the delivery is between manufacturers or retailers; and a person shall not advertise an offer to deliver or mail a tobacco product anywhere within the Bahamas".."

His concerns echo those voiced by the Bahamas Premium Cigar Association (BPCA), which last week hit out at what it described as the Government's efforts to impose an additional "sin tax" on high-end, premium cigars through the planned Bill.

Describing the existing 220 per cent taxation rate as "stifling" for a niche that is popular with high-end tourists, Michael Maragh, the Association's president, said "this already oppressed retail industry would effectively be killed off" should the Government seek to extract further revenue.

He argued that there was no need for heavy-handed regulation or extra taxation on cigars, as studies had shown they carried "nowhere near the same level of risk" to health as other tobacco products.

However, Dr Duane Sands, minister of health, told Tribune Business that fears of a further hike in the 220 percent tobacco tax rate were premature as the Bill was "not yet ready for prime time".

He conceded that the draft Tobacco Control Bill was "awfully draconian" and needs further work, with "absolutely no decision" taken over any taxation increase.

Dr Sands confirmed to Tribune Business that his Ministry had begun consultations over the draft Bill, which has been in the planning stages for at least three years as part of the Bahamas' efforts to meet its World Health Organisation (WHO) obligations.

His predecessor, Dr Perry Gomez, referred to the Tobacco Control Bill during the 2015 mid-year Budget communication, and Dr Sands yesterday revealed that the deadline the Bahamas had given for passing this legislation was now "fast approaching".

Emphasising that key policy decisions in relation to the Bill have yet to be taken, Dr Sands suggested the Association's fears were premature and an effort "to piggyback on some of the public opinion about gaming" and so-called 'sin taxes'. He urged it to address its concerns to the Government.