South African E-Cigarette Tax Proposal Sparks Controversy

Sep.21.2022
South African E-Cigarette Tax Proposal Sparks Controversy
Proposed equal tax on all e-cigarette products in South Africa to ensure fair competition, warns tobacco company. Prices will more than double otherwise.

British American Tobacco South Africa has stated that any proposed consumption tax on electronic cigarette products should be uniformly applied to all "participants" to ensure fair competition and an equal competitive environment for all participants. Otherwise, electronic cigarette prices could double or more.


Tobacco giants, represented by Dianne Moyses, stated at the Financial Standing Committee that according to their own data, e-cigarette products account for less than 0.5% of the nicotine products market in South Africa.


However, there are too many retailers creating their own e-cigarette liquids.


According to Mouyis, many individuals are "DIY-ing" imported liters of nicotine liquid just to turn it into more small pod bottles, a tax-free product.


The National Treasury department has proposed an average consumption tax of R2.91 per milliliter for electronic cigarettes, with a 70:30 ratio between nicotine and non-nicotine elements.


Representatives have stated that in order to ensure taxation from this transaction, they worked with the Oxford Economics Research Institute and found that a tax rate of R1.45/ml should be the absolute ceiling for tariffs.


The representative stated that, taking South Africa's capacity into consideration, a tariff of 70 cents would be more appropriate.


Representing manufacturers and retailers, the South African Vapour Product Association's Asanda Gcoyi has issued a warning that taxes will drive up prices, resulting in a potential average price increase of 138% for e-cigarette products and a 36% decrease in consumption of e-cigarette oil.


The British American Tobacco Company emphasizes that a radical increase in consumption taxes will push consumers towards a growing illegal market.


The tobacco company has proposed the following changes to the country's electronic cigarette products:


It is necessary to introduce a consumer tax registration system for manufacturers and retailers – opening up the market to the South African Revenue Service (SARS).


Manufacturers will be required to label their e-cigarette products with nicotine volume measurements on their packaging. Currently, e-cigarettes are measured by the number of puffs they provide, but tracking should be based on the volume of nicotine in milliliters.


Implement a tracking system with a unique identification code for every product from day one.


Gcoyi added that the proposed tax raises concerns as there are flaws in the underlying rationale.


She stated that the scientific basis for taxation is inaccurate because the national Ministry of Finance believes that the electronic cigarette industry is attempting to undermine global tobacco efforts, while many international studies have actually shown that e-cigarettes are a less harmful alternative to traditional smoking.


She added that the purpose of the consumption tax is still unclear, as the Ministry of Finance has provided very few details on how it will benefit public health, and there is also insufficient research on the effects it will have on youth consumption.


Gcoyi argues that imposing a consumption tax would have significant unexpected and irrational consequences. One such consequence is that the proposed tariffs would make electronic cigarettes more expensive than traditional cigarettes, leading to illegal trade and going against the principle of harm reduction.


Subsequently, the Steam Products Association has called on businesses to oppose the consumption tax and has urged the Ministry of Finance to conduct further market research on their proposal's impact.


Statement:


This article is a compilation of third-party information intended for industry exchange and learning.


This article does not represent the views of 2FIRSTS and we cannot confirm the accuracy or truthfulness of its content. The compilation of this article is solely intended for discussion and research within the industry.


Due to the limitations of the translation ability, the translated article may not fully reflect the original text. Please refer to the original text for accuracy.


2FIRSTS aligns completely with the Chinese government's views and positions on any matters concerning domestic issues, Hong Kong, Macau, Taiwan, and foreign affairs.


The copyright of compiled information belongs to the original media and author. If there is any infringement, please contact us for removal.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Holdings said in its latest shareholder letter that it is moving to commercialize PACHA products and monetize its PMTA assets as the FDA changes enforcement priorities for unauthorized ENDS products. Thirty PACHA SKUs were previously tentatively identified for a proposed public list of products that the FDA generally does not intend to prioritize for enforcement. Charlie’s is also preparing test-market sales of age-gated flavored disposables and says it currently holds 678 PMTA-related product assets while seeking additional strategic transactions and partnerships.
Sep.11
Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands has agreed to acquire 100% of Swedish modern oral nicotine company Yoik Group AB for an initial SEK515 million, equivalent to about US$53.9 million, plus a deferred payment linked to performance over the next two years. Yoik owns nicotine pouch brand Helwit, which held about 3.4% of Sweden’s modern oral nicotine market over the past 12 months. Imperial says the acquisition will more than double its existing share of the Swedish market. Helwit is also sold elsewhere in the Nordics, through European online channels and in selected UK retail outlets.
Sep.08
Canada Considers Easing Pharmacy-Only Nicotine Pouch Sales Rules, Potentially Reopening Convenience Store Channel
Canada Considers Easing Pharmacy-Only Nicotine Pouch Sales Rules, Potentially Reopening Convenience Store Channel
Canada's federal government is considering changes to current restrictions on where nicotine pouches can be sold, potentially allowing authorized products to return to convenience stores and other general retail channels, although no decision has been made. Since 2024, emerging nicotine replacement therapy products such as nicotine pouches have been largely restricted to behind-the-counter pharmacy sales. Health Canada, meanwhile, continues to recall unauthorized and higher-strength nicotine pouches, indicating that the current discussion concerns retail access for authorized products rather than a broad relaxation of nicotine pouch regulation.
Sep.14
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
At the 2026 New Approaches Summit in New York, FDA Center for Tobacco Products Director Bret Koplow said the PMTA pathway is “predicated on tobacco harm reduction.” He outlined four CTP priorities: youth prevention, helping adults quit or switch to lower-risk products, improving relative-risk communication, and reducing unauthorized products. Koplow also addressed flavored e-cigarettes, public risk perceptions, industry credibility and efforts to make PMTA reviews more efficient and predictable.
Sep.26
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds American, a BAT subsidiary, showcased four Vuse Pro flavored e-cigarette pods and its VELO nicotine pouch portfolio at NACS Show 2026. Booth staff confirmed to 2Firsts that the Vuse Pro flavors are sold in the U.S., although they have not received FDA marketing authorization. BAT outlined plans to expand Vuse retail distribution and reported that VELO held a 30.5% year-to-date volume share of the U.S. modern oral nicotine category through August 2026. The booth also featured the newly launched VELO MAX range and merchandising displays combining cigarettes, vaping products and oral nicotine brands.
EXPO
Oct.09
HG Innovation, linked to IMiracle and ELFBAR, wins China patent for 6-methylnicotine salts covering vaping and oral products
HG Innovation, linked to IMiracle and ELFBAR, wins China patent for 6-methylnicotine salts covering vaping and oral products
HG Innovation Limited has been granted a Chinese invention patent covering 6-methylnicotine salt formulations and their use in oral and vaping products. The technology forms salts between 6-methylnicotine and alicyclic carboxylic acids, with granted claims extending to oral products, atomization substrates and electronic atomization devices. Applicant-generated tests reported differences in oxidation stability, in-vitro cytotoxicity and aerosol heavy-metal performance compared with selected benzoate or lactate controls. HG Innovation is directly linked to the broader IMiracle and ELFBAR business network.
Sep.04