Vaping products and other nicotine-substitutes will be taxed at a flat excise duty rate of R2,90/ml from next month.
Also read: UCT study shows alarming high school vaping trend
This is according to the South African Revenue Service (SARS), which has amended the tobacco product excise to account for vaping products.
‘Manufacturers of these products are therefore required to apply for and obtain licenses for their manufacturing premises in respect of such products with SARS before 1 June 2023 and to submit their first excise duty account by 28 July 2023,’ stated the revenue service.
‘Special storage warehouses in respect of such products should similarly be licensed with SARS before 1 June 2023.’
Earlier this year, the CEO of Vapour Products Association SA (Vpasa) Asanda Gcoyi, said that such an excise tax on e-cigarettes would damage the industry.
At the time, Gcoyi said that the government had not completed adequate impact assessments for the effect of the tax on an industry that amounted to R1.5 billion in 2022.
She warned that the tax could lead to a 22% drop in sales.
A recent study, which found that a quarter of matric learners are vaping to deal with stress, has also proven cause for concern for researchers and the education department alike.
The preliminary study by UCT pulmonologist Professor Richard van Zyl-Smit and other researchers highlighted the alarming trend among matric learners at affluent high schools, amid concerns expressed by the Western Cape Education Department (WCED) over the increase in the number of young children caught in possession of e-cigarettes in schools.
In the report, published on the university’s Lung Institute website, Van Zyl-Smit revealed that one in four (25%) learners in affluent areas were using vape products and that the habit was prevalent among high school learners of all ages.
Van Zyl-Smit emphasised that vaping is extremely addictive, as products contain nicotine, making it difficult for users to stop.
He believes that the government should make vaping products less accessible while introducing strict measures regarding advertising.
Also read:
Alcohol and tobacco products now cost more in SA with new vaping tax on the cards
Picture: Unsplash
