Vapers will have to dig deep to maintain already costly habit

Although there was previously no tax on e-cigarettes and liquids, this changed in yesterday’s budget speech and has resulted in a somewhat steamy reaction from antismoking lobbyists and vape industry players alike.

Finance Minister Tito Mboweni announced that government will tax heated tobacco products at a rate of 75% of cigarette excise rate with immediate effect.

Andrew Golding, managing director of Hit The Ground Running, a hubbly and vape wholesale company, said given the cost of e-liquids, the new tax could create an alternative market.

“The same as what happened with tobacco products, this could force shop owners and suppliers to produce their own liquids and sell them from home, so as to avoid the tax,” said Golding.

E-liquids usually come in four bottle sizes: 10ml, 30ml, 60ml and 120ml and depending on the brand or flavour, they sell from R49 to R82 for 10ml and up to R299 for a 60ml.

Effectively, this means the imposed 75% tax will see vapers shelling out about 55c more than the usual price.

“I feel some people might turn back to tobacco products if taxes are too high,” said Golding.

He urged government to engage with stakeholders in the vape industry and figure out a win-win for both parties.

“The vape industry is made up mostly of small to medium-sized businesses that help employ the youth. For example, my last business employed 12 people under the age of 23 who could not find jobs.”

The National Council Against Smoking welcomed the new tax, saying it was in line with World Health Organisation recommendations that e-cigarettes should be taxed.