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

Philippine DTI Says Flavored Vape Products With Minor-Appealing Descriptors Are “100 Percent Smuggled”
Philippine DTI Says Flavored Vape Products With Minor-Appealing Descriptors Are “100 Percent Smuggled”
A Philippine Department of Trade and Industry official told a Senate hearing on vaping regulations that flavored vape products marketed with descriptors attractive to minors are “100 percent smuggled” and did not pass the agency’s licensing process.
Mar.16 by 2FIRSTS.ai
Michigan Senate Bill 786 Seeks to Ban Sale of Vapes With Metal Heating Elements
Michigan Senate Bill 786 Seeks to Ban Sale of Vapes With Metal Heating Elements
Michigan lawmakers introduced Senate Bill 786 on February 18, 2026, proposing to prohibit the sale or transfer of vapor products that contain heating elements unless those elements are made of or encased in glass or ceramic materials
Regulations
Feb.21
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
The Australian government is preparing a new crackdown on the illicit tobacco market, including stronger penalties, expanded police surveillance powers and tougher asset seizure measures.
Mar.19 by 2FIRSTS.ai
Aurora advances retail tobacco licensing ordinance to curb under-21 access to vapes and tobacco
Aurora advances retail tobacco licensing ordinance to curb under-21 access to vapes and tobacco
The Denver Post reported that Aurora’s City Council unanimously approved a retail tobacco licensure ordinance on first reading Monday night to reduce underage access to tobacco products, including e-cigarettes and vaping cartridges. The ordinance would stiffen fines for businesses that sell to people under 21 and tighten rules on where tobacco retailers can locate in the city.
Feb.26 by 2FIRSTS.ai
KT&G to cancel 10.866 mln treasury shares, about 9.5% of shares outstanding
KT&G to cancel 10.866 mln treasury shares, about 9.5% of shares outstanding
KT&G said it plans to cancel all treasury shares it holds, totaling 10,866,189 shares, representing about 9.5% of shares outstanding, in line with Korea’s third amendment to the Commercial Act requiring companies to cancel repurchased shares within one year. The company also disclosed progress on its shareholder-return plan and multiple agenda items for next month’s shareholders meeting.
Feb.26
Patent Reveals China Tobacco Hubei Industrial Testing Animal Model for Heated Tobacco Safety Evaluation
Patent Reveals China Tobacco Hubei Industrial Testing Animal Model for Heated Tobacco Safety Evaluation
China Tobacco Hubei Industrial Co., Ltd. has published a patent describing a laboratory method to evaluate the reproductive and developmental safety of heated tobacco products using non-human animal exposure models. The approach introduces a structured toxicological testing framework that could support safety verification, quality control, and regulatory evidence generation for heated tobacco products.
Mar.09