South Africa could until the beginning 2023 introduce a tax on e-cigarettes

Recently the South African government announced, that they impose a consumption tax E-cigarettes products will be charged, the on 1. January 2023 will come into force.

According to South African Finance Minister Enoch Godwana, the proposal to tax e-cigarettes is part of the South African government's package to tax tobacco, Alcohol and sugary products, a suggestion, which was submitted to the public for consultation last year, and the e-cigarette tax is included in the changes to the tax law 2022 be included.

In December last year, the South African Ministry of Finance published a 32-page document, from which emerged, that the government is considering a tax on e-cigarettes and atomized products, and openly asked the public for suggestions. Following the publication of the document, there was widespread discussion and great concern in South African society. It is assumed, that there are no specific control measures for e-cigarettes and atomized products in South Africa, and that the national tax system has major gaps and inadequacies.

At the end of February this year, Gordwana presented the Ministry of Finance's first budget report for the year to Parliament 2022 before, in which it was said, that the excise tax on e-cigarettes would apply to all e-cigarette liquid products, independently of, whether they contain nicotine or not, and that the price would be at least R2.9 per ml.

In addition, the excise tax on alcohol and tobacco will be increased 4,5 % on 6,5 % elevated.

The e-cigarette industry was first, who expressed her displeasure. She argued, that introducing a tax on e-cigarettes could discourage smokers, to switch from traditional tobacco to e-cigarettes, which are ultimately a less harmful product than traditional tobacco.

At the community consultation stage on the taxation of e-cigarettes, the deadline for the proposal was initially set by the Ministry of Finance 25. Set for January and later on 7. February extended, as the proposal needed further refinement. Nevertheless, Asanda Gkoy said, CEO der South African Electronic Cigarette Industry Association, that they act as an industry association, the manufacturer, Represents sellers and importers, received no information about the proposal. They were informed about the proposal in the news, which isn't fair.