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

Reuters/AP: China Cancels E-cigarette Export Tax Rebate, Manufacturing Industry Faces Cost and Risk Pressures
Reuters/AP: China Cancels E-cigarette Export Tax Rebate, Manufacturing Industry Faces Cost and Risk Pressures
China officially cancels e-cigarette export tax rebate, putting manufacturing under cost and risk pressure.
Jan.16 by 2FIRSTS.ai
UK South East Seized 3.1M Illegal Vapes Since 2021 as Crackdown Intensifies
UK South East Seized 3.1M Illegal Vapes Since 2021 as Crackdown Intensifies
Illegal vape seizures in the UK South East have risen sharply over the past five years, with 2023 marking the high point. While single-use vapes were banned from sale in June 2025, enforcement teams say disposable products remain in circulation, fueling renewed calls for licensing and stronger enforcement funding.
Jan.23 by 2FIRSTS.ai
Consultation opens for Tasmania’s Public Health Amendment Bill 2026
Consultation opens for Tasmania’s Public Health Amendment Bill 2026
Consultation opened on February 6, 2026 for the Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026. The Bill intends to address illicit trade in tobacco, nicotine pouches and e-cigarettes, which has increased significantly across Tasmania in recent years. It proposes changes to the Public Health Act 1997 to further protect the health of Tasmanians by reducing the sale and supply of illicit tobacco, vaping and other products, and to strengthen existing tobacco control laws.
Feb.06 by 2FIRSTS.ai
Uruguay Lawmaker Proposes Ban on Smoking and Vaping in Playgrounds and Bus Stops
Uruguay Lawmaker Proposes Ban on Smoking and Vaping in Playgrounds and Bus Stops
A bill introduced by Uruguayan lawmaker Álvaro Dastugue proposes banning smoking and vaping in public spaces that include children’s play areas, as well as at bus stops and nearby waiting zones. The draft legislation aims to reduce involuntary exposure to smoke and aerosols from tobacco, marijuana and electronic vaping devices.
Dec.24 by 2FIRSTS.ai
Vietnam Ho Chi Minh City police seize 28,657 illegal vape-related products worth over US$182,400
Vietnam Ho Chi Minh City police seize 28,657 illegal vape-related products worth over US$182,400
Police in Ho Chi Minh City, Vietnam say they dismantled a large illegal vape distribution ring led by 29-year-old Nguyễn Ngọc Quốc Uy, who allegedly built a concealed “secret room” to hide contraband. Officers seized 28,657 items valued at more than VND 4.8 billion (about US$182,400).
Feb.04 by 2FIRSTS.ai
Australia’s TGA Seizes Illicit Vaping Products Worth Over  US$670,000 in Bendigo
Australia’s TGA Seizes Illicit Vaping Products Worth Over US$670,000 in Bendigo
Australia’s Therapeutic Goods Administration (TGA) has seized illicit vaping products with an estimated street value exceeding A$1 million (approximately US$670,000) following an enforcement operation in Bendigo, Victoria.
Dec.24 by 2FIRSTS.ai