Japan Tobacco, Alliance One Seek Judicial Review On Tobacco Levy

Source from:  themastonline.com 02/15/2019

JAPAN Tobacco International Leaf Zambia Limited and Alliance One Zambia Limited have sought judicial review challenging the Minister of agriculture’s decision to demand payment of tobacco levy at the rate of two per cent on purchases before Statutory Instrument No 67 of 2018 was effected.

In a notice seeking leave to commence judicial review proceedings filed in the Lusaka High Court principal registry, JTI and Alliance Zambia who have cited the Ministry of Agriculture and Tobacco Association of Zambia (TAZ), are also challenging the minister’s decision to issue SI 84 and 85 of 2018 which inter alia restrict the applicants’ operating tobacco sales floors.

They are also questioning the decision of Tobacco Board of Zambia (TBZ) to collect tobacco levy from them.

The applicants want the court to declare that the minister’s decision to demand two per cent levy from them on purchases concluded before the enactment of SI no. 67 of 2018 was illegal.

They have asked the court to declare that the decision by TBZ to collect tobacco levy from them on behalf of the permanent secretary in the Ministry of Agriculture was also illegal.

The applicants also want the court to declare that

the minister’s decision to enact SI no. 84 and 85 of 2018 was ultra vires the Tobacco Act and that the court should quash the decisions.

They want the court to grant them an order prohibiting the minister from implementing or enforcing SI no 84 and 85 of 2018.

And the applicant further seeks an order to prohibit TBZ from collecting tobacco levy from them and that if leave was granted, it should operate as a stay of the decision until the determination of the matter and that the hearing of the application be expedited.

The applicants stated that the minister issued a directive on December 20 last year increasing the tobacco levy from one per cent to two per cent when the consultative meeting was inconclusive and JTI objected to the increment.

The applicants are arguing that the minister cannot demand payments of tobacco levy at 2 per cent for purchases that were done prior to August 31, 2018.

They submitted that the minister’s demand was unlawful and an outright illegality.  Enditem