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

Smoking Rate Drops to 17.9%, Vaping Rate Climbs to 9.3% in South Korea
Smoking Rate Drops to 17.9%, Vaping Rate Climbs to 9.3% in South Korea
The Korea Disease Control and Prevention Agency (KDCA) released its 2025 Community Health Survey results covering more than 230,000 adults. Traditional cigarette smoking dropped to 17.9%, down 1 percentage point from last year, while e-cigarette use increased to 9.3%, up 0.6 points. Overall tobacco product use stood at 22.1%, a slight decline from 2024 but still 0.5 points higher than 2019.
Dec.08 by 2FIRSTS.ai
India’s NUSRL Hosts National Consultation on Protection from Emerging Tobacco and Nicotine Products
India’s NUSRL Hosts National Consultation on Protection from Emerging Tobacco and Nicotine Products
The National University of Study and Research in Law (NUSRL) in Ranchi, together with national and international public health experts, held a consultation focused on youth protection, enforcement capacity, and the regulatory landscape for emerging nicotine products. State Health Minister Irfan Ansari called for stronger policies and coordinated efforts to prevent addiction.
Dec.02
South Korea’s Parliament Reconsiders Bill to Regulate Synthetic Nicotine as Tobacco
South Korea’s Parliament Reconsiders Bill to Regulate Synthetic Nicotine as Tobacco
South Korea’s National Assembly is once again reviewing a bill to classify synthetic nicotine as a tobacco product under the Tobacco Business Act. The proposal aims to close regulatory loopholes that allow untaxed, unregulated nicotine liquids — often used by minors — to circulate freely. Lawmakers expect the bill to pass during the current session amid growing public and civic pressure.
Nov.26 by 2FIRSTS.ai
Swedish Oral Pouch Manufacturer WiJo to Establish U.S. Production Base, Targeting March 2026 Start-Up
Swedish Oral Pouch Manufacturer WiJo to Establish U.S. Production Base, Targeting March 2026 Start-Up
Swedish oral pouch manufacturer WiJo Pouches has announced plans to establish its first North American production facility in South Carolina, where it will lease a manufacturing site to produce nicotine, caffeine and functional pouch products. The project, expected to begin operations in March 2026 and create about 170 jobs, has secured tax incentive support from both state and county authorities.
Dec.05 by 2FIRSTS.ai
Vape Company Takes FDA to Court for Stalling Premarket Decision for Half a Decade
Vape Company Takes FDA to Court for Stalling Premarket Decision for Half a Decade
California-based vape manufacturer Schwartz E-Liquid (USA Vape Lab) has sued the U.S. Food and Drug Administration (FDA) in federal court, alleging the agency unlawfully failed to issue a decision on its premarket application for flavored e-cigarette products for more than five years. The company is seeking a court order compelling the FDA to act within 90 days.
Nov.26 by 2FIRSTS.ai
Russia’s Health Ministry backs full ban on vapes and nalivaykas
Russia’s Health Ministry backs full ban on vapes and nalivaykas
Russia’s Ministry of Health (Minzdrav) has expressed support for a full ban on vapes and “nalivayka” alcohol outlets, calling it an effective measure to curb harmful habits and improve public health.
Oct.17 by 2FIRSTS.ai