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

The U.S. Department of Justice and FDA seized 2.1 million e-cigarettes and 12 distributors and retailers were sued
The U.S. Department of Justice and FDA seized 2.1 million e-cigarettes and 12 distributors and retailers were sued
Recently, the U.S. Department of Justice and the FDA announced a joint crackdown on illegal e-cigarettes, seizing over 2.1 million unauthorized e-cigarette products from five distributors and six retailers in seven states. The companies involved had previously received warnings from the FDA but continued to sell products without market approval. This operation was jointly carried out by multiple government departments, and civil injunction lawsuits have been filed against 12 related companies an
Sep.30 by 2FIRSTS.ai
Philip Morris Korea Extends IQOS ILUMA i Warranty to 18 Months, Says Move Will Boost Smoke-Free Product Growth
Philip Morris Korea Extends IQOS ILUMA i Warranty to 18 Months, Says Move Will Boost Smoke-Free Product Growth
Philip Morris International’s Korea unit has extended the warranty for the “IQOS ILUMA i” heated tobacco series from 12 to 18 months, applying it retroactively to existing purchases, aiming to enhance user experience and market competitiveness.
Oct.15 by 2FIRSTS.ai
BAT leaders caution that EU tax hikes may recreate Australia’s ‘black market expansion’ scenario.
BAT leaders caution that EU tax hikes may recreate Australia’s ‘black market expansion’ scenario.
BAT execs warn that steep EU tax hikes on cigarettes and alternatives could spur an Australia-style surge in illicit tobacco, arguing smugglers profit even if 24 of 25 containers are seized; the European Commission disputes this view.
Oct.14
Luxembourg Passes Bill 8333: Heated Tobacco and Nicotine Pouches Regulated
Luxembourg Passes Bill 8333: Heated Tobacco and Nicotine Pouches Regulated
Luxembourg’s Chamber of Deputies adopted Bill No. 8333, transposing EU Directive 2022/2100 and extending tobacco controls to heated tobacco, e-cigarettes and nicotine pouches. The law bans flavourings, restricts sales to minors, and caps nicotine content at 0.048 mg per pouch. CBD and caffeine additives are prohibited.
Nov.03 by 2FIRSTS.ai
Portugal to Tax Nicotine Pouches from 2026 at €0.065 per Gram
Portugal to Tax Nicotine Pouches from 2026 at €0.065 per Gram
Portugal’s 2026 State Budget adds nicotine pouches to the IEC by inserting Article 104-D into the Excise Code’s tobacco chapter. A specific duty of €0.065/g applies from 2026, with rounding to whole grams. The Budget also defines pouches (natural nicotine, up to 12 mg, tobacco-free, oral mucosal absorption). Lusa projects €1.676B in tobacco excise for 2026; combined levies near €1.993B.
Oct.30 by 2FIRSTS.ai
2FIRSTS Data Insight|China’s Vape Exports to the U.S. Hit a Record $590 Million: A Peak Driven by Enforcement Cycles, Not Real Demand
2FIRSTS Data Insight|China’s Vape Exports to the U.S. Hit a Record $590 Million: A Peak Driven by Enforcement Cycles, Not Real Demand
China’s vape exports to the U.S. surged to a record $590 million in October 2025—nearly double the usual monthly level and pushing the U.S. share above 50% of China’s global shipments.But the spike was not driven by demand. Instead, it reflected a temporary release created by tightened U.S. enforcement, a collapsed logistics pathway, and a bullwhip-style surge in replenishment.The peak signals more volatility ahead, not recovery.
Special Report
Nov.24