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

Special Report | 71 U.S. Lawmakers Seek to Elevate Illicit Vape Crackdown to U.S.–China Trade Negotiations
Special Report | 71 U.S. Lawmakers Seek to Elevate Illicit Vape Crackdown to U.S.–China Trade Negotiations
U.S. Rep.Mike Carey and 70 other Republican lawmakers have urged federal officials to elevate the crackdown on illicit vapes to the U.S.–China trade agenda. In a March 4 letter to the Treasury Secretary and the U.S. Trade Representative, they warned that unauthorized vape products pose risks related to national security, youth protection and organized crime. The signatories represent about one-third of House Republicans, highlighting growing congressional attention to illicit vape trade.
Mar.10
Thai Health Authorities: Nicotine Pouches Classified as Tobacco; Sales Must Comply with 2017 Act
Thai Health Authorities: Nicotine Pouches Classified as Tobacco; Sales Must Comply with 2017 Act
Thailand’s Disease Control Department has warned that nicotine pouches (“Snus”) are classified as tobacco products and must comply with the Tobacco Products Control Act B.E. 2560 (2017). Officials said they have received complaints about sales and promotional activities, and stressed that these products must not be displayed or promoted at points of sale.
Feb.02 by 2FIRSTS.ai
Indonesia’s vape retailers adopt 21+ signage and ID verification requirements, report says
Indonesia’s vape retailers adopt 21+ signage and ID verification requirements, report says
RetailNews Asia reported that the Association of Indonesian Vape Retailers (Arvindo) has directed member stores to stop selling e-cigarettes to people under 21 and to display 21+ signage and verify customer age using valid identification.
Feb.27
Special Report | Middle East Military Conflict Disrupts Global Air Corridors: Europe-Bound Vape Logistics Defy Seasonal Price Declines, Fuel Cost Risks Emerge
Special Report | Middle East Military Conflict Disrupts Global Air Corridors: Europe-Bound Vape Logistics Defy Seasonal Price Declines, Fuel Cost Risks Emerge
Escalating tensions involving Iran are disrupting air transit routes heavily used for China’s vape exports to Europe, preventing the usual post–Lunar New Year freight rate decline. While Europe-bound capacity reliant on Middle East hubs faces pressure, shipments to the United States remain largely unaffected for now. However, potential jet fuel price increases could broaden cost pressures globally.
Special Report
Mar.02
Product | 30ml E-Liquid, 40,000 Puffs, and Three Power Settings: OXBAR Launches New DTL Product ROVOTA
Product | 30ml E-Liquid, 40,000 Puffs, and Three Power Settings: OXBAR Launches New DTL Product ROVOTA
E-cigarette brand OXBAR has launched its new DTL e-cigarette, the OXBAR ROVOTA, on its official website. The product contains 30ml of e-liquid and is officially rated for up to approximately 40,000 puffs. It has a nicotine strength of 6mg and offers around 15 flavor options. The device is equipped with a 1400mAh battery, supports Type-C charging, features a 0.4Ω dual mesh coil, and supports three power settings of 20W, 30W, and 40W.
Mar.31 by 2FIRSTS.ai
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
On March 17, PMI U.S. announced an investment of about USD 50 million in a new Business Solutions Center in Tampa, Florida. The center is expected to create about 180 direct and indirect high-skilled jobs and will consolidate business solutions, distribution operations and customer service into one hub.
Mar.18 by 2FIRSTS.ai