The South African government recently announced that they will charge an excise tax on e-cigarette products, which will come into effect on January 1, 2023.

The proposed tax on e-cigarettes, part of a package of government taxes on tobacco, alcohol and high-sugar products, was put out for public comment last year and will be included in an amendment to the tax code in 2022, according to Finance Minister Enoch Gordwana.

Last December, South Africa’s finance ministry released a 32-page document saying the government was considering a tax on e-cigarettes and vaporizer products and try to get public comment.Including 510 thread battery, glass bubbler vape, disposable vape,etc.

Since its release, the document has been widely discussed and highly concerned in South African society.

There are no specific control measures for e-cigarettes and vape products in South Africa before, and there are big loopholes and gaps in the national tax collection and administration system.

In the end of February, Gordwana send the Treasury’s first budget statement of 2022 to parliament.The report says the e-cigarette excise tax will apply to all e-cigarette liquid products, regardless of whether they contain nicotine or not, and will cost at least R2.9 per milliliter.

In addition, excise taxes on alcohol and tobacco will be increased by 4.5 to 6.5 percent. The e-cigarette industry was first to complain, arguing that a tax on e-cigarettes could discourage smokers from switching from traditional tobacco, which is less harmful than traditional tobacco.

The finance Ministry initially issued a proposal until January 25, but later extended the deadline to February 7 as the proposal needed to be refined.Asanda Gkoi, chief executive of the South African Vaping Industry Association, said it was unfair that the industry body, which represents manufacturers, sellers and importers, had not been given any notice of the proposal and that it had learned about it from the news.

Post time: Aug-30-2022