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

Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
2Firsts explored whether hookah can evolve into a more mature and governable category by interviewing Dubai-based hookah company AIR. AIR argues that strong margins, OOKA’s closed-system model and the prospect of differentiated regulation could support that shift. The larger question is whether this is simply AIR’s capital-markets narrative, or an early sign that competition, regulation and category boundaries in hookah are beginning to change.
Apr.02
Indonesian drug agency chief proposes ban on e-cigarettes and e-liquid containing harmful substances
Indonesian drug agency chief proposes ban on e-cigarettes and e-liquid containing harmful substances
Indonesian drug agency chief proposes ban on e-cigarette and e-liquid in new draft law, citing dangerous substances found.
Apr.08 by 2FIRSTS.ai
Pennsylvania Lawmaker Seeks to Keep Vape Shops Away From Schools
Pennsylvania Lawmaker Seeks to Keep Vape Shops Away From Schools
A Pennsylvania lawmaker is seeking legislation that would require newly licensed vape shops to be located at least 1,000 feet away from K-12 schools in the state. The proposal was put forward by State Representative Chris Pielli.
Mar.11 by 2FIRSTS.ai
New Zealand Vape Company Alt Becomes Government Partner After Suing Over Nicotine Limits
New Zealand Vape Company Alt Becomes Government Partner After Suing Over Nicotine Limits
Health NZ signed a NZD 500,000 contract with New Zealand-owned vape company Alt NZ Limited in December 2025 for its free vape kit programme for smokers, with more than 7,000 kits distributed so far.
Mar.23 by 2FIRSTS.ai
Jinjia Shares Discloses 2025 Annual and Q1 2026 Results With Revenue Growth, Profit Pressure and Expanding New Tobacco Business
Jinjia Shares Discloses 2025 Annual and Q1 2026 Results With Revenue Growth, Profit Pressure and Expanding New Tobacco Business
Jinjia Shares’ 2025 annual report summary and first-quarter 2026 report show that the company recorded 2025 revenue of RMB 2.988 billion, up 4.57% year on year, while net profit attributable to shareholders turned to a loss of RMB 346 million. In the first quarter of 2026, revenue rose 58.13% year on year to RMB 1.005 billion, but attributable net profit fell 45.16% to RMB 36.5349 million. The company said both revenue and cost growth were related to the expansion of its new tobacco business.
Apr.28 by 2FIRSTS.ai
Arizona’s Operation Counter Strike Conducts 1,882 Tobacco Retailer Inspections in Fiscal 2025, Issues 451 Criminal Citations
Arizona’s Operation Counter Strike Conducts 1,882 Tobacco Retailer Inspections in Fiscal 2025, Issues 451 Criminal Citations
Arizona Attorney General Kris Mayes announced the results of the Attorney General’s Office “Operation Counter Strike” program on March 9, 2026.
Mar.11 by 2FIRSTS.ai