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

Russian's Stavropol court convicts four men over illegal sales of disposable vapes
Russian's Stavropol court convicts four men over illegal sales of disposable vapes
A court in Russia’s Stavropol region convicted four local residents of illegal sales of disposable vapes, with the seized products valued at more than 26 million rubles (about $338,000). The regional prosecutor’s office said the organized group operated from March 2022 to June 2023, selling disposable electronic vapes in Stavropol, Nevinnomyssk and Mikhaylovsk, while the products lacked mandatory information required by law.
Dec.31 by 2FIRSTS.ai
Warner Robins City Council Pauses New Vape Shop Licensing
Warner Robins City Council Pauses New Vape Shop Licensing
The Warner Robins City Council has unanimously approved a six-month moratorium on issuing new licenses for retail liquor package stores and businesses primarily selling vape, CBD, tobacco, and related products. The pause will remain in effect until June 2, 2026, unless further action is taken, while pending applications are exempt.
Dec.16 by 2FIRSTS.ai
TGA Sets 2026–2027 Compliance Principles, Flags Vaping Goods as a 2026 Priority
TGA Sets 2026–2027 Compliance Principles, Flags Vaping Goods as a 2026 Priority
The Therapeutic Goods Administration (TGA) has released its Compliance Principles for 2026 and 2027.Among 12 therapeutic goods categories identified for priority compliance and enforcement activity, TGA includes vaping goods, and it plans a further review of these priorities in March 2026.
Jan.23 by 2FIRSTS.ai
China National Tobacco Corp paid $222 bln into state finances in 2025
China National Tobacco Corp paid $222 bln into state finances in 2025
China National Tobacco Corporation (CNTC) paid a record $222 billion into China’s state finances in 2025, according to official industry data.
Jan.23
Philip Morris Japan adds “Electric Purple” to IQOS ILUMA i range, expands to convenience stores from Feb. 3
Philip Morris Japan adds “Electric Purple” to IQOS ILUMA i range, expands to convenience stores from Feb. 3
Philip Morris Japan (PMJ) said on Jan. 29 it has introduced “Electric Purple” as a new standard color option for its IQOS ILUMA i heated tobacco device lineup, covering three models with prices unchanged. The new color will be available from Jan. 29 via the company’s official online and store channels, with sales expanding to convenience stores and some tobacco retailers from Feb. 3.
Jan.29 by 2FIRSTS.ai
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
BAT’s Vuse Ultra listed as GOOD DESIGN Awards winner; features app connectivity and adjustable intensity
British American Tobacco’s (BAT) Vuse Ultra vaping product has been listed among winners on the U.S. GOOD DESIGN Awards website, in the “Personal Experience” category, according to the project page. The page identifies the award year as 2025 and names BAT (London) as both the entrant and the manufacturer.
Jan.20 by 2FIRSTS.ai