South Africa: Proposed ‘Vape Tax’ Might Double Costs

Discussing the tax at a standing committee on finance, BAT spokesperson Dane Mouyis stated that in keeping with their information, vaping merchandise account for lower than 0.5% of your entire nicotine product market of South …

Discussing the tax at a standing committee on finance, BAT spokesperson Dane Mouyis stated that in keeping with their information, vaping merchandise account for lower than 0.5% of your entire nicotine product market of South Africa. Nonetheless, he added, there may be an over-proportioned variety of retailers who’re manufacturing and promoting their very own e-liquids.

He stated that information by Oxford Economics discovered that to ensure that tax to succeed in its goal, a price of R1.45/ml needs to be absolutely the higher restrict of the responsibility. Whereas, Asanda Gcoyi from the Vapour Merchandise Affiliation of South Africa (VPASA) warned that the tax would drive value will increase onto the patron, and one may see the typical value of vape merchandise improve by 138% and e-liquid consumption drop by 36%.

The Management of Tobacco Merchandise and Digital Supply Techniques Invoice

In the meantime, a brand new tobacco invoice which might exchange the last decade outdated Tobacco Merchandise Management Modification Act, is within the technique of being finalized. The Management of Tobacco Merchandise and Digital Supply Techniques Invoice, has been within the works since 2018 and was introduced by Deputy Well being Minister Joe Phaahla in 2020. It could prohibit smoking in public areas and set in place stricter e-cigarettes laws, that embody restrictions on the use, advertising and marketing, and gross sales of sure tobacco merchandise. Furthermore, it might set in place a provision permitting the federal government to implement a “100% public cigarette ban.”

The federal government’s failure to course of the invoice has pissed off public well being specialists, who say the nation has fallen behind world finest observe. The 2008 Tobacco Merchandise Management Modification Act at present in drive, has not been up to date in over a decade and subsequently accommodates no provisions to manage new-generation merchandise equivalent to vapes.

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