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

Singapore Charges 14 Over Vape Syndicate Under Organised Crime Act
Singapore Charges 14 Over Vape Syndicate Under Organised Crime Act
Singapore police said 13 people were charged on Oct 30 under the Organised Crime Act over an alleged syndicate supplying vapes locally; a 14th suspect is expected to be charged on Oct 31. All 14 had earlier been charged for possessing, or conspiring to possess, vapes for sale and are remanded. Police said the group allegedly imported vapes from Malaysia. OCA carries up to S$100,000 fine or five years’ jail; vape import/sale offences also face stiff penalties.
Oct.31 by 2FIRSTS.ai
Italian anti-trust agency investigates PMI's marketing of smoke-free products, company denies wrongdoing
Italian anti-trust agency investigates PMI's marketing of smoke-free products, company denies wrongdoing
Italian anti-trust agency investigates Philip Morris International's promotion of smoke-free products, questioning potentially misleading language.
Oct.16 by 2FIRSTS.ai
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
Virginia Attorney General Jason Miyares and Tax Commissioner James J. Alex have asked a federal court to dismiss a lawsuit challenging the state’s ban on flavored e-cigarettes. They argue plaintiffs lack standing because the products are already illegal under federal law. The state denies claims of federal preemption and asserts sovereign immunity, maintaining that its ban aligns with its authority to protect public health.
Nov.24 by 2FIRSTS.ai
Heno Biotech Invited to Speak at PouchEX 2025 in Stockholm, Introduces Supply Chain Competency Model for the Nicotine Pouch Industry
Heno Biotech Invited to Speak at PouchEX 2025 in Stockholm, Introduces Supply Chain Competency Model for the Nicotine Pouch Industry
Heno Biotech was invited to deliver a keynote address at PouchEX Stockholm 2025, presenting a new supply chain competency model for the nicotine pouch sector. The company showcased its end-to-end capabilities—from scientific research and advanced manufacturing to global regulatory compliance—underscoring the critical role of supply chain upgrading in driving sustainable industry growth.
Nov.24
Philip Morris Korea: IQOS ILUMA i “SELETTI” Limited Edition Sells Out in One Week; Prime Model Sells Out on Launch Day
Philip Morris Korea: IQOS ILUMA i “SELETTI” Limited Edition Sells Out in One Week; Prime Model Sells Out on Launch Day
Philip Morris Korea and Italian design brand SELETTI’s limited “IQOS ILUMA i × SELETTI” collection sold out within one week of launch, with the “Prime” model selling out on its first day of release.
Nov.11 by 2FIRSTS.ai
 Australia NSW Police Crack Down on Illicit Tobacco Syndicate Under Strike Force Franklin
Australia NSW Police Crack Down on Illicit Tobacco Syndicate Under Strike Force Franklin
NSW Police, together with NSW Health and the Australian Border Force, seized more than 18,000 vapes, 1.9 million cigarettes, 74kg of loose-leaf tobacco and five unregistered firearms during a week of action under Strike Force Franklin. Four people were charged following coordinated raids on the Far North Coast. Police said the operation targeted organised crime networks profiting from illicit tobacco sales, with an estimated street value exceeding $2.35 million(1.54 million US dollars)..
Nov.03 by 2FIRSTS.ai