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South Africa will impose a tax on e-cigarettes from June 1

Time: 2023-05-20

Views: 432

South Africa will impose its first sin tax on vaping products from June 1. Asanda Gcoyi, chief executive of the Vaping Products Association of South Africa (VP...

South Africa will impose its first sin tax on vaping products from June 1.



Asanda Gcoyi, chief executive of the Vaping Products Association of South Africa (VPASA), said the tax of 2.90 rand per milliliter (0.15 cents) on vaping juice, which came into effect on June 1, could double the price of the product in some cases. Fan above.



A 100ml bottle of e-liquid will be taxed at 290 rand ($15), costing 200 rand, and if all the tax is passed on to consumers, the price will rise to 490 rand, News24 reported.



Gcoyi said the vaping industry was not surprised by the tax decision because it had been discussed for several years.



"Maybe it's the ratio that isn't ideal," she added. "In our view, R2.90/ml is too high as an entry rate."



VPASA expects demand for e-liquids to drop by 26% after the excise tax, which will affect businesses and employment, Gcoyi said.



Estimates from VPASA suggest 2,250 jobs could be lost by the end of the year. She believes people will go back to smoking relatively cheap tobacco products.



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