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.

Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-Listed Vape Company iSpire Technology Restructures Leadership as Tuanfang Liu Becomes Sole CEO, BTIG Initiates Coverage on ODM Growth Opportunity
Nasdaq-listed vape company iSpire Technology has restructured its leadership team, with Tuanfang Liu becoming the company’s sole chief executive officer (CEO) and Michael Wang appointed CEO of Aspire North America. The move ends iSpire’s previous co-CEO structure and creates clearer responsibilities between group strategy and regional execution. Separately, BTIG initiated coverage on iSpire Technology with a Buy rating and a $3.50 price target, identifying ODM growth opportunities as a key investment factor.
Jul.27
2Firsts Exclusive Analysis | RLX Q2 Revenue Rises 14.8%, Company Takes Control of Western European Distributor and Expands Multi-Category Strategy
2Firsts Exclusive Analysis | RLX Q2 Revenue Rises 14.8%, Company Takes Control of Western European Distributor and Expands Multi-Category Strategy
business accounting for 68.5% of sales. A new controlling investment in a Western European distributor and plans to scale modern oral nicotine pouches point to a broader international strategy spanning channels and multiple product categories.
Special Report
Aug.14
Iowa Enforces Vape Registry Law as Retailers Warn Product Limits Could Increase Store Pressure
Iowa Enforces Vape Registry Law as Retailers Warn Product Limits Could Increase Store Pressure
Iowa has begun enforcing its vape registry law, requiring vape products to be registered before they can be legally sold in the state. The move follows a decision by the U.S. Court of Appeals for the Eighth Circuit to lift an injunction that had blocked enforcement. Retailers have warned that tighter product availability rules could increase pressure on vape shops. One Iowa retailer said that if only a limited number of products remain available, many stores could face significant business challenges.
Aug.06
Kaival Brands Explores Nicotine Pouches as Smaller Nicotine Companies Seek Smoke-Free Growth
Kaival Brands Explores Nicotine Pouches as Smaller Nicotine Companies Seek Smoke-Free Growth
U.S. nicotine company Kaival Brands Innovations Group is exploring opportunities in nicotine pouches and other modern nicotine products, reflecting a broader shift among smaller nicotine businesses beyond traditional vaping products.
Jul.17
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
Public health groups, pediatricians and parents sued the U.S. Food and Drug Administration on July 14, 2026, challenging a May enforcement guidance that they say allows unauthorized e-cigarettes and nicotine pouches to remain on the market while applications are under review.
Jul.15
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Japan Tobacco Inc. (JT) announced that it will introduce a BIG PACK version of all five tobacco capsule variants designed for its with2 infused tobacco system. Scheduled for release in Japan on August 4, 2026, the refreshed packaging doubles the contents from five capsules and one cartridge to ten capsules and two cartridges while maintaining the same flavors and formulations
News
Jun.26 by 2Firsts Perspectives