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

Product | Full-screen display and 10K puffs: IVG launches new Pro-series pod vape in the UK
Product | Full-screen display and 10K puffs: IVG launches new Pro-series pod vape in the UK
E-cigarette brand IVG has recently rolled out the IVG Pro 2 across several UK online retailers. The device is compatible with IVG Pro pods and comes in 33 flavours with nicotine strengths of 0mg, 10mg and 20mg. Channel listings show a 2ml prefilled pod paired with a 10ml refill container, with pricing around £9.99.
Feb.02 by 2FIRSTS.ai
Product | “Prefilled + Refill” Combo, Up to 30,000 Puffs Claimed: DOJO BLAST 30K PRO Launches in the UK and France
Product | “Prefilled + Refill” Combo, Up to 30,000 Puffs Claimed: DOJO BLAST 30K PRO Launches in the UK and France
DOJO has launched the upgraded BLAST 30K PRO on its official website. The device features a (2+8) ml ×2 “2 ml prefilled pod + 8 ml refill” configuration, delivering 20 ml of e-liquid per kit and claiming up to 30,000 puffs. It is also labeled as fully compatible with BLAST 10K Pods.
Jan.12 by 2FIRSTS.ai
KDCA youth panel: health indicators worsen with grade level; liquid e-cigarette use tops cigarettes among 11th-grade students
KDCA youth panel: health indicators worsen with grade level; liquid e-cigarette use tops cigarettes among 11th-grade students
Korea Disease Control and Prevention Agency’s Youth Health Panel Survey (2025) Final Results Report says key adolescent health indicators worsen as students move up grade levels. By 11th grade, lifetime tobacco experience rose to 9.59%. Among 11th-grade girls, current use of liquid e-cigarettes (1.54%) surpassed conventional cigarettes (1.33%) for the first time.
Feb.10 by 2FIRSTS.ai
Malaysia moves ahead with vape sales ban plan; PMI urges Japan-style differentiated excise taxes
Malaysia moves ahead with vape sales ban plan; PMI urges Japan-style differentiated excise taxes
Malaysia plans to implement a ban or restrictions on e-cigarettes and vaping products as early as mid-2026 and no later than year-end. The head of Philip Morris Malaysia and Singapore said the government should look to Japan’s approach of regulating and taxing different tobacco and nicotine products differently, warning that an outright ban could push demand into illicit channels.
Feb.02
Russia proposes extending voluntary labeling pilot for reusable e-cigarettes to Aug. 31, 2026
Russia proposes extending voluntary labeling pilot for reusable e-cigarettes to Aug. 31, 2026
Russia’s Ministry of Industry and Trade has proposed extending a voluntary labeling pilot covering reusable e-cigarettes and similar personal electric vaporizing devices until August 31, 2026. A draft government decree has been published on the unified portal for posting drafts of normative legal acts.
Jan.22 by 2FIRSTS.ai
Philip Morris International: Over $20 Billion Invested in the U.S. Since 2022; IQOS ILUMA to Launch Pending FDA Authorization
Philip Morris International: Over $20 Billion Invested in the U.S. Since 2022; IQOS ILUMA to Launch Pending FDA Authorization
Philip Morris International (PMI) said its U.S.-related investments have topped $20 billion since 2022, when it entered the U.S. market through its roughly $19 billion acquisition of Swedish Match. The company also said it plans to launch its heated tobacco product IQOS ILUMA in the United States pending authorization from the U.S. Food and Drug Administration (FDA).
Jan.16 by 2FIRSTS.ai