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

South Korea’s National Assembly Passes Law Classifying E-Cigarettes as Tobacco Products with Full Equivalent Regulation
South Korea’s National Assembly Passes Law Classifying E-Cigarettes as Tobacco Products with Full Equivalent Regulation
South Korea’s National Assembly recently passed a comprehensive package of 79 bills that, among other measures, formally classifies liquid vapes — e-cigarette products using nicotine-containing e-liquids — as tobacco products. These products will now be subject to the same taxation, sales restrictions and advertising controls as traditional cigarettes, and the vaping industry in South Korea is expected to face significant adjustments in compliance costs, market access and business strategy.
Dec.03
Belgian Drug Commissioner Warns of Hidden Opioids in Illegal Vapes
Belgian Drug Commissioner Warns of Hidden Opioids in Illegal Vapes
Belgium’s drug commissioner Ine Van Wymersch has warned that more than 80% of illegal refillable vape capsules seized in Belgium contain synthetic opioids, posing serious risks of early addiction among children. She told Euronews that these substances, which have no distinctive smell or color, could lead to opioid dependence from a young age.
Dec.08 by 2FIRSTS.ai
Wisconsin Lawmakers Revive Bill to Raise Legal Age for Tobacco and Vaping Purchases to 21
Wisconsin Lawmakers Revive Bill to Raise Legal Age for Tobacco and Vaping Purchases to 21
Wisconsin Senate Bill 524 (SB 524) has been reintroduced to raise the legal purchasing age for tobacco and electronic nicotine products from 18 to 21, aiming to eliminate the gap between state law and the federal “Tobacco 21” standard. Some retailers in Madison have already voluntarily adopted the 21-year age limit, while the American Lung Association is urging swift legislative action.
Dec.04 by 2FIRSTS.ai
Belarus Proposes 20% Tax Increase on Vaping Products and Nicotine Items
Belarus Proposes 20% Tax Increase on Vaping Products and Nicotine Items
Belarus will increase excise taxes in 2026 on vapes, liquids for electronic smoking systems, and non-tobacco nicotine products, with a proposed 20% rise aimed at aligning these rates with traditional cigarettes. Electronic smoking devices and heated tobacco systems will also be added to the list of excisable goods. Excise taxes on filtered cigarettes and heated tobacco will rise by 7% and 3% respectively.
Nov.13 by 2FIRSTS.ai
Altria CEO Billy Gifford to Retire; Sal Mancuso Named Successor
Altria CEO Billy Gifford to Retire; Sal Mancuso Named Successor
Altria Group, Inc. (NYSE: MO) announced that CEO Billy Gifford will retire at the conclusion of the 2026 Annual Meeting of Shareholders on May 14, 2026, after more than 30 years with the company. The Board of Directors has elected Salvatore (Sal) Mancuso, Altria’s current Executive Vice President and CFO, to succeed him as CEO.
Dec.12 by 2FIRSTS.ai
Juul, NJOY and Altria Clash Over Use of UCSF Public Documents in U.S. Patent Litigation
Juul, NJOY and Altria Clash Over Use of UCSF Public Documents in U.S. Patent Litigation
Juul Labs has asked a U.S. federal court to prevent NJOY and Altria from using documents stored in a public UCSF database in an ongoing patent lawsuit, arguing they are protected by attorney–client privilege. The defendants say the files have long been public and may contain evidence relevant to Juul’s patent conduct.
Dec.29 by 2FIRSTS.ai