Yooz warns against Saudi Arabia increasing e-cigarette taxes

Aug.24.2022
Yooz warns against Saudi Arabia increasing e-cigarette taxes
Yuèkè warns Saudi authorities against raising taxes on e-cigarettes, citing health risks, reduced tax revenue, and black market growth.

Recently, Juul issued a warning to Saudi Arabian authorities not to increase tariffs on electronic cigarette products.


The increase in taxes on electronic cigarettes may result in them becoming as expensive as traditional cigarettes. This move could also stimulate the growth of black market activities, putting consumers' health at risk, reducing government tax revenues and lowering national and regional investment and entrepreneurship attractiveness.


In recent years, national healthcare providers such as the UK National Health Service (NHS) have recognized that electronic cigarettes are a safer alternative to traditional cigarettes and have highlighted their use as a smoking cessation aid. In contrast, the World Health Organization has warned that tobacco causes over eight million deaths per year. Smoking also puts pressure on public healthcare systems and government funding, as it is associated with diseases such as cancer, heart disease, and chronic obstructive pulmonary disease.


Increasing evidence suggests that electronic cigarettes are a safer alternative and/or tool to help smokers quit smoking. Compared to tobacco products, it makes sense for authorities to keep their tax rates lower.


A global study has shown that taxes imposed to discourage people from consuming alcohol and tobacco, also known as "sin taxes," primarily impact those who are least able to afford them. This contradicts one of the eight principles for harm reduction, which calls for "non-stigmatizing, non-coercive services and resources to assist people in reducing the harms associated with drug use and their living conditions.


According to Robert Naouss, the Director of External Affairs at Yueting, the company believes that consumers of legal age have the right to access less harmful alternatives to combustible cigarettes, rather than being forced to continue using them. It is equally important to discourage the use of black market products and instead allow consumers to obtain cheaper cigarette substitutes through legally regulated channels.


According to the FDA, products smuggled into various countries and sold on the black market are not regulated and of questionable quality. These products can even end up in the hands of young people and may lead to significant health problems. In this case, the government must address individual product tax losses while also using fiscal reserves to fund healthcare facilities for smoking-related illnesses. Authorities should also consider that the growth of tax and illicit trade may drive out investors and entrepreneurs who hope to enter the market and create job opportunities, further affecting government revenue and the economy.


Yueke believes that implementing moderate taxation on electronic cigarette products is in the best interest of the authorities, which would allow consumers to continue to choose safer and more affordable tobacco alternatives.


Statement:


This article is compiled from third-party information and is intended for industry exchange and learning purposes only.


This article does not represent the viewpoint of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness and accuracy of the article's content. The compilation of this article is solely for industry-related communication and research purposes.


Due to limitations in the level of translation, the compiled article may not fully reflect the original text. Please refer to the original article for accuracy.


2FIRSTS maintains complete alignment with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign-related expressions and positions.


The compilation information is the property of the original media and the respective author. If any infringement occurs, please contact us for removal.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
ZAR has introduced Coffee AirPouch, a nicotine-free caffeine pouch product that extends the brand’s AirPouch format into the functional consumer category. Each pouch contains 50mg of natural caffeine and features a coffee flavor, highlighting how pouch-based products are expanding beyond traditional nicotine applications into broader lifestyle and energy-use scenarios.
Market
Jul.13 by 2Firsts Perspectives
PMI Highlights 43 Million Smoke-Free Users at Stockholm Summit
PMI Highlights 43 Million Smoke-Free Users at Stockholm Summit
Philip Morris International says about 43 million adults worldwide now use its smoke-free products, with nearly 70% having stopped using cigarettes and smoke-free products accounting for about 43% of its net revenues.
Jun.18
Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Health groups in Nevada are urging lawmakers to nearly double the state cigarette tax and extend similar tax changes to other nicotine products, including e-cigarettes and nicotine pouches.
Jul.17
Exclusive: China Tobacco Launches Locally Made MODEN FREE Nicotine Pouches in Indonesia
Exclusive: China Tobacco Launches Locally Made MODEN FREE Nicotine Pouches in Indonesia
2Firsts exclusively reports that China Tobacco Zhejiang Industrial has launched MODEN FREE nicotine pouches in Indonesia. The locally manufactured product is sold through Sixhill, a next-generation tobacco channel under CFU Group, at about $1.80 per 18-pouch can. The launch moves China Tobacco’s nicotine pouch activity beyond trade-show displays and testing into local production and public retail.
Jul.16
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
The Dutch Food and Consumer Product Safety Authority, known as the NVWA, seized more than 277,000 illegal vapes near Rotterdam and nearly 150,000 boxes of nicotine pouches in Utrecht and Rotterdam, calling them the largest batches of such products it has found to date. Video footage released by the NVWA shows some cartons in the warehouse bearing the “AL FAKHER / الفاخر” name, though the agency did not identify brands.
Jul.10
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
AI is moving from a back-office tool to a core organizational capability in the nicotine industry. Based on JTI’s responses, this 2Firsts feature examines how AI is reshaping talent strategy, internal mobility, decision-making and human accountability as global tobacco companies compete in the shift toward new nicotine categories.
Jun.17