Illegal Vape Market in São Paulo Worth R$5.8M Daily: Study
The illegal market for electronic cigarettes, or vapes, generates nearly R$5.8 million per day (R$2.12 billion annually) in the state of São Paulo alone, according to a new study by the University of São Paulo’s School of Multidimensional Security (ESEM-USP). Despite a nationwide ban on their sale and import by Brazil’s health agency, Anvisa, since 2009, the products are widely available and their use is expanding.
The “1st National Survey on the Demand for Illicit Goods and Services” revealed that approximately 815,757 people in São Paulo used vapes in the last 30 days. The research, which surveyed 3,000 respondents, highlights a thriving black market primarily supplied by devices originating from Paraguay and sold through physical stores, street vendors, and websites.
Leandro Piquet, the study’s coordinator and a specialist in illicit markets, argued that the prohibitionist approach is failing. “The prohibition regime, instead of eliminating the markets for illegal goods and services, ends up transferring them to the sphere of organized crime,” Piquet stated. He explained that where there is demand, a supply will always emerge, and in this case, it benefits criminal organizations with a lucrative financing source. The study also simulated that the state of São Paulo loses over R$3 billion annually in potential state and federal taxes due to the unregulated nature of the e-cigarette trade.
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