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

CNIPA Targets E-Cigarettes as Key Focus in Crackdown on Trademark Violations
CNIPA Targets E-Cigarettes as Key Focus in Crackdown on Trademark Violations
National Intellectual Property Office issued a notice to strengthen management of illegal use of trademarks, promoting fair competition.
Nov.25 by 2FIRSTS.ai
2Firsts Insights | From Limited-Edition Frenzy to Interactive Lead-Gen: The 2025 Halloween Shift in Vape Marketing
2Firsts Insights | From Limited-Edition Frenzy to Interactive Lead-Gen: The 2025 Halloween Shift in Vape Marketing
For Halloween 2025, leading vape brands such as HQD and ELFBAR are running overseas social-media engagement campaigns—covering points programs and UGC giveaways with age/region restrictions. Unlike 2024’s wave of themed devices, no brand-new Halloween limited editions have appeared on major U.S. channels this year; only RAZ has restocked last year’s version.
Oct.31 by 2FIRSTS.ai
Dagestan Proposes Pilot Ban on E-Cigarette Sales, Submits Request to State Duma
Dagestan Proposes Pilot Ban on E-Cigarette Sales, Submits Request to State Duma
The head of Russia’s Republic of Dagestan has proposed a region-wide ban on the retail sale of e-cigarettes and has written to the State Duma seeking to designate Dagestan as a pilot region for a comprehensive e-cigarette sales ban.
Oct.21 by 2FIRSTS.ai
China’s E-Cigarette Exports Rise to USD 1.098 Billion in October 2025, Up 23.7% Year-on-Year as U.S. Demand Surges
China’s E-Cigarette Exports Rise to USD 1.098 Billion in October 2025, Up 23.7% Year-on-Year as U.S. Demand Surges
China’s e-cigarette exports reached USD 1.098 billion in October 2025, rising 24.8% month-on-month and 23.7% year-on-year, according to the latest data released by the General Administration of Customs of China. Export concentration increased to 83.11%, with the U.S. market contributing the largest share of monthly growth.
Nov.21 by 2FIRSTS.ai
Philip Morris Japan launches new IQOS SENTIA “Icy Red” flavor with icy menthol and red berry notes
Philip Morris Japan launches new IQOS SENTIA “Icy Red” flavor with icy menthol and red berry notes
Philip Morris Japan has announced the launch of a new SENTIA Icy Red tobacco stick for its IQOS ILUMA i and IQOS ILUMA heated tobacco devices, featuring an intense menthol profile with red fruit notes. The new product will roll out in stages from December across physical IQOS outlets, online channels and tobacco retailers nationwide in Japan, priced at 530 yen (approx. USD 3.4) per pack.
Dec.01 by 2FIRSTS.ai
Denmark Proposes Sharper Tax Hike: Heated Tobacco Up 132%, Nicotine Pouches Facing 1,000% Increase
Denmark Proposes Sharper Tax Hike: Heated Tobacco Up 132%, Nicotine Pouches Facing 1,000% Increase
According to foreign media, the European Union will examine a strengthened Danish proposal to amend the Tobacco Excise Directive. The plan introduces sharper tax increases on heated tobacco, nicotine pouches and other products. Despite overwhelming public opposition in earlier consultations, the revision continues to move forward, raising concerns about supply chain impacts and potential growth in illicit trade.
Dec.04