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

U.S. vape firms appeal Mississippi synthetic-nicotine ban, citing FDA authority preemption
U.S. vape firms appeal Mississippi synthetic-nicotine ban, citing FDA authority preemption
A coalition of U.S. vape industry groups has appealed a Mississippi law banning the sale of e-cigarette products containing synthetic nicotine, arguing the statute effectively conditions sales on FDA authorization and unlawfully encroaches on federal regulatory authority. The law took effect in July 2025 and has already begun to be enforced.
Dec.17 by 2FIRSTS.ai
Over 92,000 kg of Nicotine Products Seized at Ambassador Bridge
Over 92,000 kg of Nicotine Products Seized at Ambassador Bridge
The Canada Border Services Agency seized 92,270 kilograms of undeclared nicotine products at the Ambassador Bridge over four days, according to a social media post. The confiscated items included vapes, tins, and pouches. Officials stated the seizure helps prevent profits from reaching organized crime groups.
Dec.03 by 2FIRSTS.ai
Singapore HSA bust links two vape warehouses; Malaysian man jailed 41 weeks
Singapore HSA bust links two vape warehouses; Malaysian man jailed 41 weeks
HSA officers in Singapore staked out a Bishan warehouse after a tip-off and found a Malaysian man in a site containing thousands of vaporisers and components. Checks on his phone led to a second warehouse in Ubi with large quantities of devices and parts.
Jan.07 by 2FIRSTS.ai
Melaka Cracks Down on Unlicensed Vape Retailers with Fines and Seizures
Melaka Cracks Down on Unlicensed Vape Retailers with Fines and Seizures
Melaka’s local authorities are intensifying enforcement against unlicensed e-cigarette retailers by issuing notices, imposing fines, and seizing illegal products. State executive councillor Datuk Ngwe Hee Sem said only premises meeting the required conditions will be granted trading licences under the Licensing of Trades (Local Authorities) By-Laws 2010.
Dec.10 by 2FIRSTS.ai
Japan Tobacco Unveils New Ploom EVO Honey Lemon Smoke Stick, Nationwide Launch in Japan from January 2026
Japan Tobacco Unveils New Ploom EVO Honey Lemon Smoke Stick, Nationwide Launch in Japan from January 2026
Japan Tobacco (JT) has announced a new flavor for its Ploom brand’s premium EVO smoke sticks: “EVO Honey Lemon Crystal.” The product will be rolled out in stages, beginning with an early release through official channels in December 2025, followed by a nationwide launch across convenience stores and tobacco retailers in January 2026, priced at JPY 550 (approximately USD 3.7).
Dec.16 by 2FIRSTS.ai
Costa Rica Ruling Party Lawmaker Proposes Vape Ban as Experts Warn of Black Market Risks
Costa Rica Ruling Party Lawmaker Proposes Vape Ban as Experts Warn of Black Market Risks
A lawmaker from Costa Rica’s ruling party has introduced a bill to completely ban e-cigarettes and related products, covering their import, sale, use, and manufacturing, citing rising youth use and associated health risks. The proposal would repeal the current regulatory law and has raised concerns that a full ban, combined with weak enforcement, could fuel a black market.
Dec.03 by 2FIRSTS.ai