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.

From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
South Korea’s New Vape Rules Raise Bar for E-Liquid Makers and China-Linked Supply Chains, Expert Says
South Korea’s New Vape Rules Raise Bar for E-Liquid Makers and China-Linked Supply Chains, Expert Says
South Korea’s new vape regulations are reshaping the e-liquid market, raising compliance requirements for manufacturers, retailers and overseas suppliers. In an interview with 2Firsts, Korean nicotine products specialist Sam Kim discusses licensing barriers, inventory impacts, China-linked supply chains, and emerging regulatory challenges around nicotine analogues, nicotine-free products and DIY mixing. The Korean case may offer broader insights as governments worldwide adapt to rapidly evolving nicotine products.
Jul.16
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10
JTI Makes Third Bet on South Korea as Ploom AURA Enters a Market Dominated by lil and IQOS
JTI Makes Third Bet on South Korea as Ploom AURA Enters a Market Dominated by lil and IQOS
Japan Tobacco International is stepping up its heated tobacco push in South Korea with Ploom AURA. Since its official launch in April 2026, the device's limited First Edition and Glacier White version have sold out, while distribution has expanded across Seoul, Incheon, Gyeonggi Province and airport duty-free channels. The rollout marks JTI's third major attempt to build a stronger heated tobacco position in South Korea, following Ploom TECH in 2019 and Ploom X Advanced in 2024. At the group level, JT plans to invest about ¥800 billion, approximately $5 billion, in reduced-risk products from 2026 through 2028, with heated products and Ploom identified as its primary investment priority.
Aug.14
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
The Dutch Food and Consumer Product Safety Authority, known as the NVWA, seized more than 277,000 illegal vapes near Rotterdam and nearly 150,000 boxes of nicotine pouches in Utrecht and Rotterdam, calling them the largest batches of such products it has found to date. Video footage released by the NVWA shows some cartons in the warehouse bearing the “AL FAKHER / الفاخر” name, though the agency did not identify brands.
Jul.10
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
Public health groups, pediatricians and parents sued the U.S. Food and Drug Administration on July 14, 2026, challenging a May enforcement guidance that they say allows unauthorized e-cigarettes and nicotine pouches to remain on the market while applications are under review.
Jul.15