The proposal document was open for public comments until the 25th of January 2022. It suggests a tax on both devices and e-liquids/capsules, which would allow for the products to be taxed relative to their nicotine content level.
Public consultations recently closed on plans to impose an excise tax on e-cigarettes in South Africa, and the suggested policy proposals have already proven controversial. In particular, the South African government intends to introduce a new excise tax on e-cigarettes, applying the duty to both non-nicotine and nicotine solutions used in these devices.
Harm reduction advocates have expressed their concern about the proposed rules, as for South Africans wishing to switch to safer alternatives to smoking, the planned vaping tax could be a deterrent that would keep them smoking.
SA’s industry welcomes the introduction of sensible e-cig regulations
The Vapour Products Association of South Africa’s (VPASA) has emphasized that contrary to what is generally assumed, the industry welcomes the introduction of sensible e-cig regulations. However the proposal tax threatens to undo years of public health progress by making the products unaffordable for low-income smokers.
Meanwhile, a recent market report offering an overview of the market situation in South Africa, reported that in 2021 the market share was reported to be 10% higher than 2020, and this could be due to a reported popularity of disposable e-cigarettes. Up until recently independent vape retailers were positive about the future, however the imminent restrictions concern them.
