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.

Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters reported that Shopify may ban all vape products from its platform as soon as this week, signaling that U.S. enforcement against the illegal vape market is expanding from retailers and importers to e-commerce platforms and payment networks.
MarketBAT
Jun.23 by 2Firsts Perspectives
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania’s June 26 Pending ENDS Certifications list includes 23 manufacturers under review, including Shenzhen Smoore, Shenzhen IVPS, YME Technology and China-linked Boulder International. The list shows state-level vape regulation moving beyond retail brands toward manufacturer-based market access alongside FDA oversight.
Regulations
Jul.06 by 2Firsts Perspectives
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
According to The Maritime Executive on August 19, 2026, the Australian Border Force (ABF) and China’s Anti-Smuggling Bureau of General Administration of China Customs worked together to dismantle an international illicit tobacco smuggling network targeting Australia. According to information released by ABF on August 20, sustained information sharing and cooperation led to investigations into 112 shipping containers, with 91 found to contain illicit tobacco. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, representing more than A$92 million in unpaid duties. More than 60 people suspected of involvement in the network were arrested in China.
Aug.20
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
As e-cigarettes, heated tobacco products and nicotine pouches expand across global markets, a central question is gaining urgency: can tobacco control rely on a universal policy model? In an interview with 2Firsts, Asian public health and addiction medicine specialist Dr. Rashidi Mohamed bin Pakri Mohamed says Western experience remains relevant, but policies must be adapted to local culture, healthcare systems, enforcement capacity, illicit markets and clinical evidence.
Jul.08
Product | IVG Launches NEXiO Prefilled Pod System, Expanding Beyond Disposable Vapes
Product | IVG Launches NEXiO Prefilled Pod System, Expanding Beyond Disposable Vapes
UK vape brand IVG has launched the NEXiO reusable prefilled pod system, expanding its product portfolio beyond disposable vape products. The device features a 1,000mAh rechargeable battery, prefilled pods with a refill reservoir structure and a claimed capacity of up to 10,000 puffs. Officially launched in the UK on July 9, 2026, NEXiO debuted with 17 flavor options, reflecting IVG’s move into reusable pod formats.
Aug.19
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