South Africa Discusses Taxation and Regulations on E-cigarettes

BAT spokesperson Dane Mouyis stated during a discussion on taxation at the Financial and Fiscal Commission that according to their data, electronic cigarette products make up less than 0.5% of the entire nicotine products market in South Africa. However, he added that there are too many retailers manufacturing and selling their own e-liquids.

He said that data from the Oxford Economics think tank showed that a tax rate of R1.45/ml should be the absolute ceiling for the tariff in order to meet revenue targets. However, Asanda Gcoyi from the Vaping Products Association of South Africa (VPASA) warned that the tax would drive up prices for consumers, resulting in a 138% increase in the average price of e-cigarette products and a 36% decrease in consumption of e-cigarette oil.

The Tobacco Products Control and Electronic Delivery Systems Bill

Meanwhile, a new tobacco bill is set to replace the decade-old Tobacco Products Control Amendment Act and is currently being finalized. The Tobacco Products and Electronic Delivery Systems Control Bill has been in the works since 2018 and was announced by Deputy Health Minister Joe Phaahla in 2020. It will ban smoking in public places and enforce stricter regulations on electronic cigarettes, including limiting their use, marketing, and sale for certain tobacco products. Additionally, it will introduce a provision allowing the government to implement a "100% public cigarette ban.

Public health experts are frustrated by the government's failure to address the issue, stating that the country is falling behind in global best practices. The current effective Tobacco Control Amendment Act of 2008 has not been revised in over a decade, lacking regulations on new products such as electronic cigarettes.

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