South Africa will officially levy excise tax on Electronic cigarette on June 1, 2023, with a fixed consumption tax rate of 2.9 South African rand/ml. Electronic cigarette manufacturers must apply for production licenses for enterprises before June 1, and improve consumption tax accounts before July 28. According to relevant reports, this tax plan was first announced by Finance Minister Enoch Godonwana in his 2022 budget speech and has been officially promoted for some time now.

This scheme has been criticized and opposed by practitioners in the Electronic cigarette industry in South Africa since it was announced. Some rational opponents said that South Africa has not yet promulgated relevant laws on Electronic cigarette products, and it is still too early to levy taxes; There are also opponents who believe that the current high electronic cigarette tax rate will push Electronic cigarette users to the black market.

Since the consumption tax on Electronic cigarette in South Africa is only applicable to Electronic cigarette produced after taxation, many retailers purchase a large amount of inventory between the levy of e-cigarette tax to realize the inconvenience of maintaining retail prices for a period of time. However, under the constant consumption of inventory, the South African Electronic cigarette market is facing the important issue of price rise, and many enterprises even choose to close down because they cannot cope with the high tax rate of e-cigarette.

The relevant media in South Africa interviewed Barry Buchman, the general manager of the Electronic cigarette retail chain Vaperite in South Africa, who expressed several important views. Barry Buchman said that the current consumption tax of 2.9 South African rand/ml (plus the value added tax of 2.90 South African rand/ml) was completely the result of the ultra vires behavior of the Ministry of Finance (NT) of South Africa.

In a related interview, Barry Buchman, the general manager of the Electronic cigarette retail chain Vaperite in South Africa, pointed out that the current high e-cigarette tax rate in South Africa and the lack of product related legislation may lead to two major problems: on the one hand, health problems, and on the other hand, a blow to Electronic cigarette sales channels.

Barry Buchman first analyzed the health problems caused by the product: higher electronic cigarette tax rate will make consumers who are more sensitive to spending tend to buy Electronic cigarette with higher nicotine content, because it will be cheaper if calculated in this way. Based on this viewpoint, Barry Buchman listed a series of data: a 30 milliliter bottle of nicotine salt tobacco oil, typically at a concentration of 2% to 5%, can be used for about 15 days. On the basis of the current price of about 180 South African rand per bottle, the consumption tax is 87 South African rand. On this basis, plus VAT, the retail price will reach 280 rand per bottle.

In contrast, a 100ml bottle of nicotine free or free radical electronic tobacco oil, with nicotine concentration ranging from zero to 0.6%, can usually be used for about 15 days. It needs to pay 290 South African rand excise tax and the corresponding value-added tax. A 100ml bottle of nicotine free or slightly addictive baseline nicotine electronic liquid with strength ranging from zero to. 06% - also lasts about 15 days - in addition to paying 290 rand tax and increase