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

West Virginia House Passes 5% Income Tax Cut and Rejects Vape Tax Increase
West Virginia House Passes 5% Income Tax Cut and Rejects Vape Tax Increase
The West Virginia House of Delegates debates income tax cut bill before session's end, rejecting Senate's e-cigarette tax amendment.With one day left in the legislative session, the West Virginia House spent more than an hour debating amendments to an income tax reduction bill.
Mar.16 by 2FIRSTS.ai
Japan Tobacco Launches Nordic Spirit Nicotine Pouches in Japan; Nationwide Rollout Starts April 6
Japan Tobacco Launches Nordic Spirit Nicotine Pouches in Japan; Nationwide Rollout Starts April 6
Japan Tobacco (JT) has introduced the new Nordic Spirit nicotine pouch brand in Japan. The Cola Fizz Medium flavor began early sales on March 3, 2026 via the CLUB JT online shop, and will be rolled out sequentially from April 6 through nationwide channels including 7-Eleven, Lawson, and NewDays. The Berry Mix Medium flavor is expected to launch on CLUB JT around mid-March.
Mar.04 by 2FIRSTS.ai
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
The Congress of Coahuila in Mexico has approved a ban on the sale, use and promotion of vapes and similar devices, citing their harmful effects on health and the environment.
Mar.31 by 2FIRSTS.ai
New York Proposal to Tax Nicotine Pouches at 75% Draws Opposition
New York Proposal to Tax Nicotine Pouches at 75% Draws Opposition
A proposal by New York Governor Kathy Hochul to impose a steep tax on nicotine pouches has drawn opposition from law-enforcement officials and business groups, who say it could expand the state’s illicit tobacco market. The measure was included in Hochul’s preliminary two-year USD 260 billion budget plan and would treat nicotine pouches like other tobacco products.
Mar.17 by 2FIRSTS.ai
Poland Weighs Ban on Disposable Vapes, Tightens Rules on Nicotine Pouches
Poland Weighs Ban on Disposable Vapes, Tightens Rules on Nicotine Pouches
Poland plans to amend its tobacco control legislation, proposing a ban on disposable e-cigarettes (both nicotine-containing and nicotine-free) while simultaneously tightening regulations on nicotine pouches and other novel nicotine products. Nicotine pouches may be permitted only in "tobacco flavour" variants to reduce their appeal to young people.
Mar.10 by 2FIRSTS.ai
PMI’s Smoke-Free Business Accounts for 43% of Net Revenues in Q1 as Full-Year EPS Guidance Rises
PMI’s Smoke-Free Business Accounts for 43% of Net Revenues in Q1 as Full-Year EPS Guidance Rises
On April 22, 2026, Philip Morris International released its first-quarter 2026 results. The report showed net revenues of $10.146 billion, up 9.1% year on year; adjusted diluted EPS of $1.96, up 16.0%; and smoke-free products accounting for 43% of total net revenues. Based on first-quarter performance, the company raised its 2026 full-year adjusted diluted EPS forecast to $8.36 to $8.51, or $8.11 to $8.26 excluding currency.
Apr.23 by 2FIRSTS.ai