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

FDA Adds 18 Tobacco Harmful Constituents and Seeks Comment on 3 More
FDA Adds 18 Tobacco Harmful Constituents and Seeks Comment on 3 More
U.S. Food and Drug Administration published a Federal Register notice finalizing the addition of 18 constituents to the established list of Harmful and Potentially Harmful Constituents in tobacco products. With the update, the list now contains 111 constituents. FDA also proposed adding three more constituents to the list and opened a public comment period ending at 11:59 p.m. ET on May 26, 2026.
Apr.24 by 2FIRSTS.ai
PMI U.S. White Paper Calls for Greater Access to FDA-Authorized Smoke-Free Alternatives and Risk-Based Taxation
PMI U.S. White Paper Calls for Greater Access to FDA-Authorized Smoke-Free Alternatives and Risk-Based Taxation
PMI’s U.S. business released a white paper and cited a national online survey showing that 79.00% of Americans surveyed believe more should be done to reduce smoking-related harm. The paper calls on policymakers, public health authorities, and medical professionals to place cigarette smoking back at the center of public health priorities, and recommends broader access to FDA-authorized smoke-free alternatives, clearer nicotine risk communication, and risk-based taxation.
Apr.15 by 2FIRSTS.ai
Malaysia’s Selangor health authorities fine company US$5,000 over toy-like vape devices
Malaysia’s Selangor health authorities fine company US$5,000 over toy-like vape devices
Selangor’s health department said a company was fined RM20,000(US$5,000) for supplying vape devices designed to resemble toys. Officers raided the firm’s premises near Taman Kosas in Ampang on Dec 19, 2025 after discovering it was importing and distributing toy-shaped vape devices.
Mar.05 by 2FIRSTS.ai
BENDSTA Urges Prime Minister to Review Bangladesh’s 2025 Tobacco Control Ordinance
BENDSTA Urges Prime Minister to Review Bangladesh’s 2025 Tobacco Control Ordinance
The Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA) has urged the prime minister to initiate a comprehensive parliamentary review of the Smoking and Tobacco Products Use (Control) Ordinance, 2025.
Mar.12 by 2FIRSTS.ai
South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea’s Ministry of Food and Drug Safety said on April 17 that it has additionally designated the International Characterization Research Institute as a tobacco harmful components testing body under the Act on the Management of Tobacco Harmfulness. The institute has research experience in analyzing harmful components in liquid e-cigarettes and has obtained recognition for tobacco-sector ISO 17025 requirements.
Apr.17 by 2FIRSTS.ai
Special Report|FDA Revises Device Name in Glas Vape Authorization; Company Signals Optimism on Menthol, Flavored Pods
Special Report|FDA Revises Device Name in Glas Vape Authorization; Company Signals Optimism on Menthol, Flavored Pods
The FDA updated public records on the PMTA authorization of a Glas vape product, renaming “Glas G Device” to “Glas G² Device” and releasing the order letter detailing scientific review and marketing restrictions. Company disclosures suggest the platform may include age-verification technology. If confirmed, Glas G² could be the first vape with device-level age verification to receive an FDA MGO. Glas executives also said menthol and other flavored pods could gain authorization in the future.
Special Report
Mar.14