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

Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
China’s 2026 “Two Sessions” reviewed the draft Outline of the 15th Five-Year Plan, which proposes implementing a health-first development strategy and strengthening the effectiveness of the Patriotic Health Campaign. Although the document does not address specific industries, this public-health governance framework provides a new policy context for observing the future regulation, product strategies, and market development of China’s tobacco and next-generation nicotine sectors.
Industry Insight
Mar.08
Exclusive | China Starts Mandatory National Standards Process for Heated Cigarettes and Nicotine Pouches
Exclusive | China Starts Mandatory National Standards Process for Heated Cigarettes and Nicotine Pouches
China has launched mandatory national standards work for heated cigarettes and nicotine pouches, further formalizing regulation of both categories. The move may help lay groundwork for future market entry, but does not signal imminent domestic commercialization.
Apr.15
Vape Club: Over 1.3 Million Illegal E-Cigarettes Seized in UK by 2025, Worth £10 Million on Streets
Vape Club: Over 1.3 Million Illegal E-Cigarettes Seized in UK by 2025, Worth £10 Million on Streets
Vape Club report reveals 1.3 million illegal e-cigarettes seized in UK by 2025, worth £10 million on the streets.
Mar.12 by 2FIRSTS.ai
FDA Wins Default Entry in Case Against E-Cigarette Distributor, to Seek Permanent Injunction
FDA Wins Default Entry in Case Against E-Cigarette Distributor, to Seek Permanent Injunction
The U.S. Food and Drug Administration (FDA) has made procedural progress in its lawsuit against North Carolina-based e-cigarette distributor Dream Distro LLC and its owner. A federal district judge granted the government’s request for entry of default after the defendants failed to respond to the complaint within 21 days of service. The government will next seek a default judgment, including a permanent injunction.
Apr.09 by 2FIRSTS.ai
French Anti-Tobacco Group Contre-Feu Calls for Plain Packaging Across All Vaping Products
French Anti-Tobacco Group Contre-Feu Calls for Plain Packaging Across All Vaping Products
French anti-tobacco group Contre-Feu said in a statement released on April 14 that e-cigarette manufacturers are encouraging nicotine dependence among young people through targeted marketing and called for concrete measures to protect minors. The group asked for plain packaging for all vaping products, strict regulation of flavor names, and a ban on online sales.
Apr.15 by 2FIRSTS.ai
South Korea’s Revised Tobacco Business Act to Take Effect, With Penalties for Unauthorized Sales
South Korea’s Revised Tobacco Business Act to Take Effect, With Penalties for Unauthorized Sales
With the revised Tobacco Business Act set to take effect on April 24, synthetic nicotine e-cigarettes will be included within the legal definition of tobacco in South Korea. According to information released by Ongjin County, businesses wishing to sell these products must obtain tobacco retailer designation from the relevant authority.
Mar.25 by 2FIRSTS.ai