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.

Ireland Vape Bill Passes Dáil, Setting Limits on Flavours, Packaging and Retail Display
Ireland Vape Bill Passes Dáil, Setting Limits on Flavours, Packaging and Retail Display
Ireland’s Public Health (Tobacco Products and Nicotine Inhaling Products) (Amendment) Bill 2026 has passed final stage in the Dáil and will move to the Seanad, with measures to limit vape flavours to tobacco or unflavoured products and tighten rules on packaging colours, retail advertising, in-store displays and sales of nicotine pouches to minors.
News
Jun.26 by 2Firsts Perspectives
Product | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
Product | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
APUS has introduced the Chloe 50K disposable vape, which has appeared across U.S.-facing online retail channels including Element Vape and Vapesourcing. The device combines a purse-inspired body and chain attachment with a 20ml e-liquid capacity, 1,250mAh rechargeable battery, dual mesh coil, and battery and e-liquid indicators. It is rated for up to 50,000 puffs. The product does not appear on the FDA’s current list of authorized e-cigarettes, and U.S. retail availability does not indicate FDA marketing authorization.
Jul.15
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA’s proposed foreign tobacco establishment registration and product listing rule remains unfinished, but Accorto told 2Firsts it reflects a shift toward structured oversight similar to medical device and pharmaceutical compliance frameworks. For Chinese and global e-cigarette suppliers, U.S. market access is moving beyond product authorization toward full-chain compliance covering manufacturing, documentation, import control, distribution, retail and marketing discipline.
Special Report
Jul.09
South Korea Rejects 16 Trillion Won Tax-Evasion Claim Over Chinese Synthetic Nicotine
South Korea Rejects 16 Trillion Won Tax-Evasion Claim Over Chinese Synthetic Nicotine
The South Korean government rejected allegations that Chinese synthetic-nicotine e-liquids were linked to about 16 trillion won in tobacco tax evasion, saying China does not ban synthetic nicotine exports and the estimate is difficult to verify, while acknowledging that pre-law synthetic-nicotine inventory is effectively difficult to tax.
Market
Jun.25
Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
According to South Korean media reports, KT&G has expanded sales of its heated tobacco device lil AIBLE 3.0 to convenience stores across Seoul starting May 13. The convenience-store version is offered in the exclusive OUD GRAY color. On the same day, KT&G also launched two new dedicated consumables for the lil AIBLE platform—AIIM REMIX and AIIM ICESPOT—at convenience stores nationwide, each priced at KRW 4,800.
Market
Jun.01
Illegal Vape Sellers Still Use TikTok and Other Platforms to Drive Sales Despite Australia’s Ad Ban
Illegal Vape Sellers Still Use TikTok and Other Platforms to Drive Sales Despite Australia’s Ad Ban
Illegal vape sellers are still promoting nicotine products on TikTok, Instagram and YouTube despite Australia’s 2024 advertising ban, while illicit tobacco sales are increasingly moving from physical stores to online marketplaces.
Jul.15