Sarandí Tobacco Company Opposes the Monopoly of Multinationals

Critics of the tobacco chapter in the Ley Bases claim that the arguments of the new regulatory framework promised to reduce consumption, increase tax collection and even contribute to the health system, objectives that would not be met in practice. “However, the report published by the ABECEB Consulting Firm, whose president is the former Minister of Production and Labor, Dante Sica, mentor together with Minister Federico Sturzenegger of the current Massalin 3 Law, promised an extra tax increase of 315 million USD this year and 1.4 billion USD more between 2025 and 2026,” they explained.

Finally, they added that, contrary to the decision of Philip Morris and BAT, they are forced to increase their prices to cope with the increase in the tax. “These measures put national companies at a disadvantage compared to multinationals, damaging public coffers and benefiting foreign interests,” they concluded.

In this context, the current scenario for tobacco SMEs is particularly challenging. Large multinationals, leveraging their resources and global presence, can adjust their pricing strategies quickly to adapt to legislative changes, while local companies face significant barriers to maintaining their competitiveness.

This imbalance in competition has direct implications not only for the economy but also for public health. By making tobacco more accessible by reducing prices, consumption may increase, contradicting public health goals of reducing tobacco-related illness and death.

In addition, declining tax revenues limit the government’s ability to fund tobacco prevention and treatment programs, as well as other public health initiatives. This places an additional burden on the health system, which is already under pressure from the consequences of smoking on the population.

Given this situation, it is essential that public policies and regulations are carefully designed to ensure a fair balance that protects both public health and the economic viability of local companies such as Tabacalera Sarandí and thousands of SMEs that generate genuine jobs. Dialogue between the government, companies and workers’ representatives will be key to reaching solutions that benefit all sectors involved and, above all, promote a healthier and more equitable environment for all Argentines.

Moving toward a comprehensive solution will require policymakers to reconsider current approaches to tobacco regulation. This could include implementing policies that better balance market needs and public health goals, such as setting a price floor to prevent Big Tobacco from predatory price cutting, or increasing resources for awareness campaigns about the risks of smoking.

The current situation requires a careful and collaborative review of policies to ensure that the measures adopted not only promote fair competition, but also protect public health and strengthen the health system, thereby ensuring a healthier and more equitable future for all.