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

Philip Morris International closes last German factory due to declining demand
Philip Morris International closes last German factory due to declining demand
Philip Morris International closes last German factory in Dresden due to declining cigarette demand in Europe.
Jul.31 by 2FIRSTS.ai
KT&G to Launch New “RAIM” Heated Tobacco Pod Brand on October 27
KT&G to Launch New “RAIM” Heated Tobacco Pod Brand on October 27
South Korean tobacco company KT&G has announced it will launch a new heated tobacco (heat-not-burn, HNB) pod brand, “RAIM” (레임), on October 27. Designed exclusively for use with the company’s “LIL AIBLE” devices, the new pods are marketed as effectively reducing the intensity of tobacco flavor. With the addition of RAIM, the total number of LIL AIBLE-exclusive pod varieties will increase to 19. KT&G stated that thanks to the strong sales of LIL AIBLE 2.0, its domestic HNB market share rose to 45
Aug.14 by 2FIRSTS.ai
South Korea’s KT&G Pledges $290,000 to Support Tobacco Farmers’ Health Checks and Training Programs
South Korea’s KT&G Pledges $290,000 to Support Tobacco Farmers’ Health Checks and Training Programs
South Korea’s KT&G has announced a 400 million won (approximately USD 290,000) initiative to support tobacco farmers through health checkups and educational training programs. Demonstrating tangible support, company employees also joined farmers in the tobacco harvesting process.
Jul.01 by 2FIRSTS.ai
Polish Joint Operation Seizes Nearly 1,000 Untaxed E-Cigarettes, Tax Evasion Totals Around $14,000
Polish Joint Operation Seizes Nearly 1,000 Untaxed E-Cigarettes, Tax Evasion Totals Around $14,000
Polish Lublin police successfully seized nearly 1,000 untaxed e-cigarettes, with the total tax evasion amounting to approximately 50,000 PLN (around $14,000). Those involved may face up to three years in prison.
Aug.05 by 2FIRSTS.ai
Australian Government-Funded Vaping Education Program Featured in The Lancet: Student Vaping Rates Drop by 65%
Australian Government-Funded Vaping Education Program Featured in The Lancet: Student Vaping Rates Drop by 65%
Australia’s “OurFutures” vaping education program cut student vaping rates by 65% after 12 months, according to a trial of 5,000 students across 40 schools. Published in The Lancet, it is the first proven effective school-based e-health intervention in Australia. The program will be expanded through 2028, with long-term data expected in 2026.
Jul.29 by 2FIRSTS.ai
Pakistan Government Moves to Make Smokeless Tobacco Nicotine Products Mandatory Standards

The Pakistan government has instructed the Ministry of Science and Technology (MoST) and the Pakistan Standards and Quality Control Authority (PSQCA) to accelerate
Pakistan Government Moves to Make Smokeless Tobacco Nicotine Products Mandatory Standards The Pakistan government has instructed the Ministry of Science and Technology (MoST) and the Pakistan Standards and Quality Control Authority (PSQCA) to accelerate
Pakistan government instructs MoST and PSQCA to include smokeless tobacco products in mandatory standards, aiming to boost exports and curb illegal products.
Aug.26 by 2FIRSTS.ai