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

Malaysia health minister says court conviction over vape promotion sets key precedent for Act 852 enforcement
Malaysia health minister says court conviction over vape promotion sets key precedent for Act 852 enforcement
Malaysia’s Health Minister Datuk Seri Dr Dzulkefly Ahmad said the Putrajaya Magistrate’s Court decision to convict a known personality for promoting vape has set an important legal precedent for enforcing the Control of Smoking Products for Public Health Act (Act 852).
Jan.09 by 2FIRSTS.ai
Russia’s Kirov seizes unmarked vape liquids worth over  $13,000
Russia’s Kirov seizes unmarked vape liquids worth over $13,000
Police in Kirov, Russia, seized unmarked nicotine e-liquids for vapes worth more than 1 million rubles (about $13,000, using 1 ruble = $0.013) in a case involving a 27-year-old entrepreneur. Officers confiscated over 700 bottles from five retail outlets and found more than 8,000 additional units at a warehouse.
Feb.03 by 2FIRSTS.ai
Police dismantle a network of 50+ stores selling unmarked nicotine products in the Moscow region
Police dismantle a network of 50+ stores selling unmarked nicotine products in the Moscow region
TASS reported that police dismantled a distribution network in the Moscow region selling nicotine-containing products, e-cigarettes and vapes without mandatory markings, with organizers earning more than 10 million rubles per month (more than about $130,000). Interior Ministry spokesperson Irina Volk said some items were labeled with counterfeit identification tools of the Chestny Znak system, while others had no codes.
Dec.30 by 2FIRSTS.ai
Juul Labs UK launches JUUL2 Peach flavour aimed at adult smokers
Juul Labs UK launches JUUL2 Peach flavour aimed at adult smokers
Juul Labs UK announced on January 1, 2026 the launch of a new JUUL2 Peach flavour, described as an adult-oriented addition that expands the JUUL2 flavour portfolio. The company said the flavour will roll out across the UK from January 1 through major retailers, wholesalers and convenience stores, offering adult smokers alternatives to transition away from cigarettes.
Jan.04 by 2FIRSTS.ai
France’s Top Administrative Court Suspends Nicotine Pouch Decree
France’s Top Administrative Court Suspends Nicotine Pouch Decree
France’s Council of State has suspended a government decree that was set to ban the manufacture, production and export of nicotine pouches from April 2026. The court ruled that companies were not given sufficient time to reorganise their operations. A final decision on the legality of the decree is expected by June 2026. The court noted that the commercial sale of nicotine pouches is already restricted under existing public health laws.
Dec.23 by 2FIRSTS.ai
Two Florida Bills Move: One Restricts Vape Advertising, Another Rewrites Cigarette Tax Treatment for Heated Tobacco
Two Florida Bills Move: One Restricts Vape Advertising, Another Rewrites Cigarette Tax Treatment for Heated Tobacco
The Florida Senate Industries Committee advance SB 980, the “Florida Age-Gate Act,” which would restrict advertising, promotion, and open displays of certain nicotine dispensing devices that lack FDA marketing authorization, with escalating penalties. Separately, the Florida House Ways and Means Committee advance HB 377, which would exclude heated tobacco products from being taxed like cigarettes.
Jan.28 by 2FIRSTS.ai