South Africa’s E-Liquid Tax Begins Next Month
South Africa will introduce a sin tax for vaping products for the first time beginning June 1.
The introduction of the R2.90/ml ($0.15 cents) tax on vape juice on 1 June could more than double the price of the product in some instances, according to Asanda Gcoyi, CEO of the Vapour Products Association South Africa (VPASA).
R290 ($15) tax will be levied on a 100-milliliter bottle of vape juice, which costs R200, raising the price to R490 if all of the tax is passed on to consumers, according to News24.
Gcoyi says the vaping industry is not surprised by the decision to impose the tax because it was discussed over several years.
“What is perhaps not ideal is the rate,” she adds. “The R2.90/ml as an introductory rate, in our view, is too high.”
The VPASA is expecting a 26 percent decrease in the demand for vape juice after the excise is introduced, which will affect businesses and employment, Gcoyi says.
The VPASA’s estimates show that 2,250 jobs could be lost by the end of the year. She believes people will “go back” to smoking relatively cheaper tobacco products.