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 | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
Product | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
APUS has introduced the Chloe 50K disposable vape, which has appeared across U.S.-facing online retail channels including Element Vape and Vapesourcing. The device combines a purse-inspired body and chain attachment with a 20ml e-liquid capacity, 1,250mAh rechargeable battery, dual mesh coil, and battery and e-liquid indicators. It is rated for up to 50,000 puffs. The product does not appear on the FDA’s current list of authorized e-cigarettes, and U.S. retail availability does not indicate FDA marketing authorization.
Jul.15
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
JTI Philippines has expanded the Nordic Spirit nicotine pouch portfolio in the Philippines with two new variants, Dark Pop and Red Frost. Both products maintain the brand’s tobacco-free nicotine pouch positioning, with Dark Pop featuring a fizzy cola profile with citrus and sweet notes, while Red Frost combines cool mint with sweet red berry flavors. The two variants are now available through Philippine online retail channels.
Aug.18
Kantar Study Finds More Than 93% of Vape Products in Ukraine Fail Regulatory Requirements
Kantar Study Finds More Than 93% of Vape Products in Ukraine Fail Regulatory Requirements
According to Interfax-Ukraine, a study conducted by market research firm Kantar Ukraine at the request of major tobacco companies found that more than 93% of vape products in Ukraine did not fully comply with regulatory requirements. The research examined product categories, brand distribution and consumer purchasing channels, showing that pod systems and disposable vapes represent major segments of the market, while offline retail remains the dominant purchasing channel. The findings highlight ongoing compliance challenges in Ukraine’s vape market.
Aug.26
How Large Is France’s Off-Channel Tobacco Market? Logista Says It Has Become Structural, While the Official Estimate Is 17.7% and Some Industry Studies Put It Above 50%
How Large Is France’s Off-Channel Tobacco Market? Logista Says It Has Become Structural, While the Official Estimate Is 17.7% and Some Industry Studies Put It Above 50%
Logista France says tobacco consumption outside France’s official tobacconist network has become a large and structural market phenomenon, but official and industry estimates differ sharply. France’s TAFE study estimates that 17.7% of tobacco consumption escaped domestic taxation in 2023, with most of that volume attributed to cross-border purchasing rather than street sales. Some industry studies use broader off-channel definitions and put the figure above 50%. Meanwhile, French Customs seized 547.94 tonnes of tobacco in 2025, up 12%, showing continued pressure from illicit trade.
Sep.04
Australia’s TGA Places Nicotine Pouches Under Therapeutic Goods Rules From July 24, Blocking Imports of Unapproved Products
Australia’s TGA Places Nicotine Pouches Under Therapeutic Goods Rules From July 24, Blocking Imports of Unapproved Products
Australia is strengthening controls on nicotine pouches under its existing therapeutic goods regulatory framework. According to the Therapeutic Goods Administration (TGA), nicotine pouch products must meet regulatory requirements, and unapproved products cannot be legally imported. The move follows Australia’s broader approach of maintaining strict oversight of nicotine products, including nicotine-containing vapes. As nicotine pouches expand globally, Australia’s regulatory approach highlights growing differences in how countries manage emerging smoke-free nicotine products.
Regulations
Jul.27
SMOORE’s DOJO by VAPORESSO to Launch New Global Brand Identity on September 1
SMOORE’s DOJO by VAPORESSO to Launch New Global Brand Identity on September 1
According to recent LinkedIn posts from people at VAPORESSO, SMOORE and a German distribution partner, vape brand DOJO will begin rolling out a new global brand identity on September 1, 2026, led by a redesigned handwritten logo. The new visual system will be gradually applied across product packaging, marketing materials and digital assets over the following months. Fabio Corsaro, Head of Marketing and Purchasing at MG Wesel GmbH, said the rebrand was related to trademark issues, but that explanation has not been publicly confirmed by DOJO, VAPORESSO or SMOORE. DOJO is currently promoting its Blast X product in Germany.
Aug.31