Governments around the world impose excise taxes on products like alcohol and tobacco to reduce their demand. The South African government has recently implemented a tax on vaping products for the same reason. However, the new vaping tax has enraged vaping lobby groups and manufacturers who argue that e-cigarettes are less harmful than traditional cigarettes. They also claim that the tax will spawn an illicit industry, that people will go back to smoking traditional cigarettes, and that the tax will not dissuade the youth from starting vaping.In this article, we analyze the price increase claims and the effectiveness of the excise tax regime on vaping products. The Dr Yunus Carrim from Research Unit on the Economics of Excisable Products (REEP) conclude that the vaping tax is flawed because it is not well-targeted at reducing the consumption of vaping products among the youth.
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The Portfolio Committee on Health has recently made an important announcement regarding the new Tobacco Products and Electronic Delivery Systems Control Bill in South Africa. The public consultation period for this bill will conclude on July 28th. In this article, we will delve into the key details of the bill, its objectives, and the potential impact it may have on the smoking and vaping industry in the country.
Read moreThe vaping industry in South Africa is about to face a significant change as a new sin tax for vaporized tobacco products will be introduced next month. This tax has raised concerns and sparked debates among various stakeholders, including the Vapour Products Association South Africa (VPASA) and the Research Unit on the Economics of Excisable Products (REEP). In this article, we’ll delve into the details of this new tax and the implications it could have on the industry and public health.
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