South Africa Taxes Vapes Before Passing Product Regulations

South Africa Taxes Vapes Before Passing Product Regulations

South Africa has imposed a tax on e-liquid, even before passing a law to legally recognize and regulate vaping products. The tax took effect June 1.

The tax, which applies to all e-liquid—whether sold in bottles, prefilled pods or disposable devices—is 2.90 South African Rand (about $0.15 U.S.) per milliliter. A 60 mL bottle of e-liquid would be taxed at a rate of R174—or about $9 U.S. The tax could double the price to consumers for many vape products.

The wholesale tax is essentially the same as what was proposed by the country’s finance minister in his 2022 budget speech. It applies to all vape products, with or without nicotine.

The country’s domestic vaping industry expects to lose a quarter of its income and over 2,000 jobs, according to Vapour Products Association South Africa (VPASA) CEO Asanda Gcoyi. She told News 24 that many people will return to cigarettes, and others will find cheaper vape products on the black market.