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

Polish Government to Amend E-Cigarette Definitions, Applying  PLN 40 Excise Tax to Magnetic-attachment Devices
Polish Government to Amend E-Cigarette Definitions, Applying PLN 40 Excise Tax to Magnetic-attachment Devices
Poland plans to amend its excise tax regulations on e-cigarettes to address a loophole created by the emergence of electromagnetic iMagnetic-attachment devices in 2025. Under the proposal, products incorporating ferromagnetic components will be classified as e-cigarettes and subject to an excise tax of PLN 40 (about USD 11.2) per unit. The revised rules are expected to take effect 14 days after promulgation.
Dec.26 by 2FIRSTS.ai
UK vape retailer VPZ to expand manufacturing, open 40 stores in 2026
UK vape retailer VPZ to expand manufacturing, open 40 stores in 2026
UK specialist vape retailer VPZ has launched a multi-million-pound investment programme to boost domestic production capacity and tighten supply-chain controls. The plan includes adding a fifth production line, opening 40 new stores across the UK in 2026 and creating hundreds of jobs, while establishing a bonded warehouse at its Edinburgh headquarters as regulation tightens and a vaping tax is planned.
Feb.02 by 2FIRSTS.ai
California DOJ publishes first-ever Unflavored Tobacco List; products not on the list are ineligible for sale
California DOJ publishes first-ever Unflavored Tobacco List; products not on the list are ineligible for sale
California Attorney General Rob Bonta announced the publication of the first-ever Unflavored Tobacco List (UTL), listing unflavored tobacco products lawful for sale under California’s flavored tobacco restrictions. Any covered tobacco product not appearing on the UTL is deemed a flavored tobacco product and ineligible for sale.
Jan.04 by 2FIRSTS.ai
Reynolds American’s Grizzly expands NASCAR presence, to be primary sponsor for 27 Kaulig Racing Cup races in 2026
Reynolds American’s Grizzly expands NASCAR presence, to be primary sponsor for 27 Kaulig Racing Cup races in 2026
Grizzly Nicotine Pouches, a brand of American Snuff Company (ASC), a Reynolds American unit, said it will increase its NASCAR investment in the 2026 season, serving as primary sponsor for a combined 27 races across Kaulig Racing’s two full-time NASCAR Cup Series cars. The company added that Grizzly is already one of NASCAR’s official partner brands across all NASCAR tracks.
Jan.29 by 2FIRSTS.ai
Kentucky to issue provisional state licenses to tobacco, nicotine and vapor retailers who applied before Jan. 1, 2026
Kentucky to issue provisional state licenses to tobacco, nicotine and vapor retailers who applied before Jan. 1, 2026
Kentucky will issue provisional state licenses to tobacco, nicotine and vapor product retailers that applied for a license with the Department of Alcoholic Beverage Control (ABC) before Jan. 1, 2026.
Dec.31 by 2FIRSTS.ai
Make Your Brand Understood by the People Who Matter
Make Your Brand Understood by the People Who Matter
Feb.02