Study Shows Potential Loss of Tax Revenue from E-Cigarette Trade

Sep.29.2024
Study Shows Potential Loss of Tax Revenue from E-Cigarette Trade
A study from ESEM at the University of São Paulo shows that Brazil could lose $1.4 billion in tax revenue by 2025 due to illegal e-cigarette trade.

According to a report from Oparana on September 28th, a study conducted by the International Relations Institute (IRI) of the University of São Paulo's Institute of Multidimensional Security (ESEM) shows that Brazil could lose 7.7 billion reais (1.4 billion US dollars) in state and federal taxes by 2025 due to illegal e-cigarette trading.


A study maintaining a conservative outlook on market growth and monthly consumption predicts that if e-cigarette devices (DEFs) are taxed properly, Brazil could see tax revenues reaching 10.3 billion Brazilian reais (1.9 billion USD) by 2028. The study is based on research conducted by the Minas Gerais Industry Federation (FIEMG), which identified a potential market of 3.3 million e-cigarette users in Brazil.


Professor Leandro Piquet of the School of Multidimensional Security at the University of São Paulo explained that...


The illegal trade of e-cigarettes relies on four main pillars: bans, smuggling, corruption of public institutions, and digital sales.


One particular feature of this market is that the majority of its retail is done through the internet, making it easy to purchase even banned products through digital channels.


Researchers have stated that even in illegal circumstances, consumption levels continue to rise, leading to public doubts about the effectiveness of current policies. They believe that appropriate regulations and taxes may be a more feasible solution, which can both combat the illegal market and address related public safety issues.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Yinghe Technology's Sikary reports revenue of 1.274 billion yuan in 2025 first half, with net profit of 3.20 billion yuan
Yinghe Technology's Sikary reports revenue of 1.274 billion yuan in 2025 first half, with net profit of 3.20 billion yuan
Yinghe Technology's subsidiary Sikary reports 12.74 billion yuan in revenue and 3.20 billion yuan in net profit.
Aug.25 by 2FIRSTS.ai
Observation | Ultrasonic Microporous Atomization in the Spotlight: A Look at Technical Differences and Market Applications
Observation | Ultrasonic Microporous Atomization in the Spotlight: A Look at Technical Differences and Market Applications
At the e-cigarette supply chain expo in Shenzhen on August 26, 2Firsts visited the exhibition and researched the latest industry trends.
Aug.28 by 2FIRSTS.ai
Observation | Clear Tank E-Cigs Surge: Dedicated Coils Emerge as Supply Chain Best-Sellers
Observation | Clear Tank E-Cigs Surge: Dedicated Coils Emerge as Supply Chain Best-Sellers
At the e-cigarette supply chain expo held in Shenzhen on August 26, 2Firsts learned that dedicated coils for clear tank e-cigarettes have emerged as the top-selling products among suppliers.
Aug.26 by 2FIRSTS.ai
BAT Executive: Company’s Smokeless Products Outperform Cigarettes in Japan and UK, Over 70% Share in Sweden
BAT Executive: Company’s Smokeless Products Outperform Cigarettes in Japan and UK, Over 70% Share in Sweden
James Murphy, Director of Research at British American Tobacco (BAT), said in a podcast that the company is accelerating its transition to smoke-free products, with sales in Japan and the UK already surpassing cigarettes, and a share of over 70% in Sweden.
Sep.01 by 2FIRSTS.ai
Police in Turkey's Isparta Province Seize 29 Illegal E-Cigarettes in Special Operation, 1 Suspect Identified
Police in Turkey's Isparta Province Seize 29 Illegal E-Cigarettes in Special Operation, 1 Suspect Identified
Police in Isparta province, Türkiye, seized 29 illegal e-cigarettes and a suspect has been filed for investigation.
Sep.24 by 2FIRSTS.ai
Supply Chain Research | 2Firsts Visits Dingli Group to Explore the Upgrade Path of the Novel Tobacco Industry
Supply Chain Research | 2Firsts Visits Dingli Group to Explore the Upgrade Path of the Novel Tobacco Industry
2Firsts visited Dingli Group on Sept 11 to boost collaboration in the novel-tobacco supply chain.
Sep.12 by 2FIRSTS.ai