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

Product | Differences in Configuration and Indicator Methods: Three UWELL G5 Series Devices Launch on U.S. and U.K. Channels
Product | Differences in Configuration and Indicator Methods: Three UWELL G5 Series Devices Launch on U.S. and U.K. Channels
UWELL has launched three models in its Caliburn G5 Lite series across U.S. and U.K. channels, using indicator lights or breathing lights to display device status. Compared with the earlier G4 series, the new G5 Lite lineup continues a screenless design and increases battery capacity to 1,600mAh. The three devices also share the same core specifications, including e-liquid capacity, maximum power output, and pod compatibility.
Dec.10 by 2FIRSTS.ai
Mexican Senate Approves Nationwide Ban on E-Cigarettes and Vapes
Mexican Senate Approves Nationwide Ban on E-Cigarettes and Vapes
Mexico’s Senate passed a reform to the General Health Law banning the production, importation, sale, and advertising of e-cigarettes and vape products nationwide. The bill passed with 76 votes in favor, 37 against, and one abstention.
Dec.12 by 2FIRSTS.ai
Philippines Probe Agency Seizes 800 Smuggled Vape Products in Manila, Stores Face Multiple Charges
Philippines Probe Agency Seizes 800 Smuggled Vape Products in Manila, Stores Face Multiple Charges
The National Bureau of Investigation (NBI) recently seized around PHP 250,000 (approximately USD 4,250) worth of smuggled and unregistered vape devices and liquids—about 800 items in total—from two stores in Manila. Authorities said the devices could be modified to discreetly consume cannabinoids and other illegal drugs, and that those involved will face charges under the Philippines’ Vaporized Nicotine and Non-Nicotine Products Regulation Act and the Consumer Act.
Dec.02 by 2FIRSTS.ai
Japan Tobacco and Japanese Artist VERDY Team Up Again for Limited-Edition Ploom AURA Collaboration Set
Japan Tobacco and Japanese Artist VERDY Team Up Again for Limited-Edition Ploom AURA Collaboration Set
Japanese artist VERDY has renewed his collaboration with Japan Tobacco’s heated tobacco brand Ploom to launch a limited-edition “Ploom AURA × Wasted Youth” set in December 2025, which will be sold via a one-day pop-up store in Tokyo’s Harajuku district through a lottery system, with part of the lineup also available in limited quantities on Ploom’s online platform.
Dec.09 by 2FIRSTS.ai
BAT Subsidiary Warns of Surge in Illegal Nicotine Pouches in Canada, Calls for Unified Regulatory Framework
BAT Subsidiary Warns of Surge in Illegal Nicotine Pouches in Canada, Calls for Unified Regulatory Framework
Imperial Tobacco Canada, a subsidiary of British American Tobacco, has urged the federal government to respond to the spread of illegal nicotine pouches by allowing approved products to be sold through a wider range of adult retail channels. The company is also calling for stronger retail inspections, enhanced digital tracking, and closer coordination among provinces to build a consistent regulatory framework and restore the accessibility of the legal market.
Dec.05 by 2FIRSTS.ai
Mongolia Proposes Full Regulation of E-Cigarettes Under Tobacco Law
Mongolia Proposes Full Regulation of E-Cigarettes Under Tobacco Law
Mongolia’s Parliament has begun reviewing major amendments to the Tobacco Control Law, which would bring e-cigarettes and other new nicotine products under the same legal framework as traditional cigarettes. The bill also proposes a gradual increase in tobacco excise taxes through 2030 and new restrictions on flavors, marketing, and public smoking.
Nov.26 by 2FIRSTS.ai