Study Shows Potential Loss of Tax Revenue from E-Cigarette Trade

Sep.29.2024
Study Shows Potential Loss of Tax Revenue from E-Cigarette Trade
A study from ESEM at the University of São Paulo shows that Brazil could lose $1.4 billion in tax revenue by 2025 due to illegal e-cigarette trade.

According to a report from Oparana on September 28th, a study conducted by the International Relations Institute (IRI) of the University of São Paulo's Institute of Multidimensional Security (ESEM) shows that Brazil could lose 7.7 billion reais (1.4 billion US dollars) in state and federal taxes by 2025 due to illegal e-cigarette trading.


A study maintaining a conservative outlook on market growth and monthly consumption predicts that if e-cigarette devices (DEFs) are taxed properly, Brazil could see tax revenues reaching 10.3 billion Brazilian reais (1.9 billion USD) by 2028. The study is based on research conducted by the Minas Gerais Industry Federation (FIEMG), which identified a potential market of 3.3 million e-cigarette users in Brazil.


Professor Leandro Piquet of the School of Multidimensional Security at the University of São Paulo explained that...


The illegal trade of e-cigarettes relies on four main pillars: bans, smuggling, corruption of public institutions, and digital sales.


One particular feature of this market is that the majority of its retail is done through the internet, making it easy to purchase even banned products through digital channels.


Researchers have stated that even in illegal circumstances, consumption levels continue to rise, leading to public doubts about the effectiveness of current policies. They believe that appropriate regulations and taxes may be a more feasible solution, which can both combat the illegal market and address related public safety issues.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Hanwha Securities: KT&G's Global Market Share Expected to Hit New High, Overseas Heated Tobacco Sales Projected to Grow 74%
Hanwha Securities: KT&G's Global Market Share Expected to Hit New High, Overseas Heated Tobacco Sales Projected to Grow 74%
KT&G predicted to reach all-time high global market share in 2025, with Q3 sales expected to surge 10%.
Oct.16 by 2FIRSTS.ai
Imperial Brands launches ZONE nicotine pouches in the UK, covering the core 9–12 mg strength segment
Imperial Brands launches ZONE nicotine pouches in the UK, covering the core 9–12 mg strength segment
Imperial Brands has launched its ZONE nicotine pouches in the UK, targeting the mainstream 9–12 mg nicotine strength segment. The brand debuts with five flavours at a recommended retail price of £6.50 per can. Mint variants currently account for around 70% of UK nicotine pouch sales, while fruit flavours are growing rapidly. ZONE will be distributed primarily through independent retail channels.
Nov.18 by 2FIRSTS.ai
Malaysian state of Selangor proposes sharing e-cigarette tax revenue with federal government for local enforcement agencies
Malaysian state of Selangor proposes sharing e-cigarette tax revenue with federal government for local enforcement agencies
Selangor, Malaysia proposes federal government share e-cigarette tax revenues for local enforcement, suggesting collaboration for better regulation.
Oct.13 by 2FIRSTS.ai
German Federal Council calls for ban on disposable vape, government resists change
German Federal Council calls for ban on disposable vape, government resists change
Germany's Federal Council calls for ban on disposable e-cigarettes due to environmental and economic threats, sparking debate.
Oct.14 by 2FIRSTS.ai
US FDA releases MRTP renewal application materials for IQOS heated tobacco product and will hold an expert meeting in October
US FDA releases MRTP renewal application materials for IQOS heated tobacco product and will hold an expert meeting in October
New materials related to Philip Morris Products' MRTP renewal application have been submitted to the FDA for review.
Sep.26 by 2FIRSTS.ai
FCTC: Global tobacco control treaties to address nicotine addiction, tobacco’s impact on the environment and illicit tobacco trade
FCTC: Global tobacco control treaties to address nicotine addiction, tobacco’s impact on the environment and illicit tobacco trade
More than 1,400 delegates will gather in Geneva as two major global tobacco control treaties convene to address rising nicotine addiction, environmental harms, and illicit tobacco trade—key discussions that could shape the future of global tobacco control policy.
Nov.14