South Africa Proposes New E-Cigarette Tax
The South African government plans to propose a new tax on e-cigarette products, set to take effect in 2023. The move follows last year’s announcement of its intention to tax e-liquids. Finance Minister Enoch Godongwana outlined the new tax proposal as pa
The South African government will propose a new tax on vaping products, which is set to take effect in 2023.
This move follows the government’s announcement last year that it intended to tax e-liquid.
South African Finance Minister Enoch Godongwana outlined the new tax proposal as part of a package of new and increased excise duties on tobacco, alcohol, and high-sugar products. The vaping tax will appear in the 2022 Taxation Laws Amendment Bill, although Parliament may still make changes before the bill is finalized. According to Godongwana, it is expected to be implemented on January 1, 2023.
The new tax will apply to all vape liquid products, whether or not they contain nicotine, at “at least” ZAR 2.90 (USD 0.19) per milliliter—essentially double the retail price of e-liquid. The tax rate is expected to amount to 40% of the retail price of the most popular brands.
South Africa currently has no specific regulations for vaping products, but it is working to regulate them under its tobacco laws.
