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

Malaysia CID Endorses Nationwide Vape Ban Amid Rising Drug-Laced Vape Cases
Malaysia CID Endorses Nationwide Vape Ban Amid Rising Drug-Laced Vape Cases
Malaysia’s Federal Criminal Investigation Department (CID) has voiced support for a nationwide ban on vaping, particularly targeting drug-laced vape devices, to address rising abuse cases.
Oct.23 by 2FIRSTS.ai
InterTabac 2025 HNB Roundup: New Releases from China Tobacco Hunan, CFU, iMiracle and Others
InterTabac 2025 HNB Roundup: New Releases from China Tobacco Hunan, CFU, iMiracle and Others
At InterTabac 2025, multiple companies unveiled new heated tobacco (HTP/HNB) devices. China Tobacco Hunan introduced Usonic Dual featuring a full-range vortex thermal field and an AI voice assistant; CFU Group launched Biheat with a dual-heating system and a 3.42-inch display; REJO rolled out MULTI, supporting multi-brand sticks with dual heating; UWOO debuted UWOO DH, whose dual stick-slots enable “one stick, two sessions.”
Sep.26 by 2FIRSTS.ai
London police crackdown on drug-laced e-cigarettes: Over 2,000 poisoning charges expected in 2024-2025
London police crackdown on drug-laced e-cigarettes: Over 2,000 poisoning charges expected in 2024-2025
London police announced a crackdown on drug-tainted e-cigarettes. The operation stemmed from an incident in the southeast of the capital where e-cigarettes were laced with "cannabis-like products," leading to the hospitalization of a 14-year-old. Data shows that between March 2024 and March 2025, London police received over 2,000 allegations of drug-tainted e-cigarettes. Of the victims in August 2025, 66% were women, a disproportionately high proportion.
Sep.26 by 2FIRSTS.ai
The U.S. Drug Enforcement Administration announced its law enforcement results: more than 2.35 million illegal e-cigarettes were seized in a week and 106 people were arrested
The U.S. Drug Enforcement Administration announced its law enforcement results: more than 2.35 million illegal e-cigarettes were seized in a week and 106 people were arrested
The U.S. Drug Enforcement Administration (DEA) announced its latest law enforcement results, saying that in "Operation Vape Trail", it seized more than 2.35 million illegal e-cigarette devices and cartridges in the week from September 15 to 19, also seized 115 firearms, more than $8.7 million in cash and assets, and arrested 106 people.
Sep.23 by 2FIRSTS.ai
Tuscaloosa, Alabama, plans to impose an e-cigarette tax before a state law takes effect in October
Tuscaloosa, Alabama, plans to impose an e-cigarette tax before a state law takes effect in October
The Tuscaloosa, Alabama, City Council is considering imposing a local tax on e-cigarette products to meet a state bill deadline. Alabama Act 2025-377, signed into law in May, plans to impose a $0.10 per milliliter state excise tax on e-cigarette products starting in October.
Sep.25 by 2FIRSTS.ai
Leaked EU Paper Suggests COP11 Push to Ban Nicotine Pouches and Flavoured Nicotine Products
Leaked EU Paper Suggests COP11 Push to Ban Nicotine Pouches and Flavoured Nicotine Products
According to media reports, a leaked European Commission document indicates the EU plans to push for its strictest regulatory framework on nicotine and tobacco products at COP11 in Switzerland this November, including measures such as a full ban on nicotine pouches and flavoured products.
Oct.10 by 2FIRSTS.ai