Treasury turns its attention to the vaping market

2022/01/20 09:34:00

Not an unexpected move.

Vaping, Tobacco

Vaping products are mostly unregulated in SA, and the Department of Health plans to amend the current tobacco control legislation to include these products in the regulatory framework. Moneyweb tax

Not an unexpected move.

National Treasury published a discussion paper on the intended taxation of electronic nicotine and non-nicotine delivery systems – vaping products – on December 15 last year, following the heads-up given by the Minister of Finance in the 2021 February Budget.Consumer journalist 18 January 2022 - 14:43 November 8 2021.19 January 2022 - 05:09 Linda Ensor A booster vaccine may not be enough protection against infection by the highly transmissible Omicron variant of Covid-19, which has caused infection rates to soar globally, a new study has found.19 January 2022 - 05:09 Linda Ensor A booster vaccine may not be enough protection against infection by the highly transmissible Omicron variant of Covid-19, which has caused infection rates to soar globally, a new study has found.

The government had signalled its intention to start taxing these new products in the previous two budgets. Vaping products are mostly unregulated in South Africa, and the Department of Health plans to amend the current tobacco control legislation to include these products in the regulatory framework. Pioneer Foods told its retailers of the impending demise of those products in advance of the Saldanha plant shutdown, so that they could order more than their usual stock of those little glass jars in December. Read: BAT’s Vuse gets FDA nod amid broad review of E-Cigarettes The health rationale The taxation of this highly profitable new business, which may or may not use tobacco, is given the rationale of the government’s concern over the “health consequences of tobacco consumption”.. Nevertheless, with South Africa’s increasing debt levels, National Treasury is under pressure to increase taxes wherever it can.. Treasury estimates that vaping products generated about R2. A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

54 billion in revenue in 2018. This article is free to read if you register or sign in. Already subscribed? Simply sign in below. The average annual growth between 2013 and 2018 was 21.25%.. Vaping delivery devices are battery-powered and do not burn or use tobacco leaves; instead they “vaporise e-liquid solutions to create an aerosol” which is inhaled by the user. The liquid contains a number of chemicals, and may include tobacco oils (or equivalent).

As an aside, The Devil’s Playbook: Big Tobacco, Juul, and the Addiction of a New Generation by Lauren Etter (Crown, May 2021) makes for very interesting reading. (Juul is an e-cigarette brand.) Global developments Treasury has come late to the party. Jurisdictions such as the European Union have placed a restriction on the concentration levels of nicotine in electronic cigarettes. South Africa still has to legislate for “e-cigarettes containing no nicotine and making no therapeutic or smoking cessation claims”.

The World Customs Organisation’s seventh edition of the Harmonised Commodity Description and Coding System in the classification of products includes a new tariff headline for “products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; [and] other nicotine containing products intended for the intake of nicotine into the human body”. Read: India bans e-cigarettes as global backlash at vaping gathers pace Vaping may help tens of thousands quit smoking, UK study show Countries that are already regulating the use of e-cigarettes and have introduced taxes on vaping products include the US, the Republic of South Korea, the Philippines, Sweden, Latvia, Russia, and Kenya. Design of tax system for vaping products Designing a tax system for vaping products requires taking into consideration many factors, such as: Treasury has recommended the hybrid excise tax system, which has already been implemented in Latvia. Latvia has imposed an excise tax on e-liquid at €0.01 per ml and €0.

005 per 1mg of nicotine. Excise structure The excise structure to be implemented will have to address the following: Treasury cautions that a tax policy design must take into account the administrative feasibility of the tax system. The more complex a tax system, the greater the costs for the South African Revenue Service (Sars) to administer it and the greater the compliance costs for taxpayers. Treasury recommends the implementation of an excise regime with flat rates for liquid solutions and nicotine content. This would minimise the administrative costs of the tax system and reduce the compliance burden for taxpayers.

Written comments on the discussion paper can be submitted to Vaping_tax@treasury.gov.za by close of business next Tuesday (January 25). jQuery(document).on('click', 'a[href*="#to-comments"]', function (event) { event.

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National Treasury published a discussion paper on the intended taxation of electronic nicotine and non-nicotine delivery systems – vaping products – on December 15 last year, following the heads-up given by the Minister of Finance in the 2021 February Budget.Consumer journalist 18 January 2022 - 14:43 November 8 2021.19 January 2022 - 05:09 Linda Ensor A booster vaccine may not be enough protection against infection by the highly transmissible Omicron variant of Covid-19, which has caused infection rates to soar globally, a new study has found.19 January 2022 - 05:09 Linda Ensor A booster vaccine may not be enough protection against infection by the highly transmissible Omicron variant of Covid-19, which has caused infection rates to soar globally, a new study has found.

The government had signalled its intention to start taxing these new products in the previous two budgets. Vaping products are mostly unregulated in South Africa, and the Department of Health plans to amend the current tobacco control legislation to include these products in the regulatory framework. Pioneer Foods told its retailers of the impending demise of those products in advance of the Saldanha plant shutdown, so that they could order more than their usual stock of those little glass jars in December. Read: BAT’s Vuse gets FDA nod amid broad review of E-Cigarettes The health rationale The taxation of this highly profitable new business, which may or may not use tobacco, is given the rationale of the government’s concern over the “health consequences of tobacco consumption”.. Nevertheless, with South Africa’s increasing debt levels, National Treasury is under pressure to increase taxes wherever it can.. Treasury estimates that vaping products generated about R2. A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

54 billion in revenue in 2018. This article is free to read if you register or sign in. Already subscribed? Simply sign in below. The average annual growth between 2013 and 2018 was 21.25%.. Vaping delivery devices are battery-powered and do not burn or use tobacco leaves; instead they “vaporise e-liquid solutions to create an aerosol” which is inhaled by the user. The liquid contains a number of chemicals, and may include tobacco oils (or equivalent).

As an aside, The Devil’s Playbook: Big Tobacco, Juul, and the Addiction of a New Generation by Lauren Etter (Crown, May 2021) makes for very interesting reading. (Juul is an e-cigarette brand.) Global developments Treasury has come late to the party. Jurisdictions such as the European Union have placed a restriction on the concentration levels of nicotine in electronic cigarettes. South Africa still has to legislate for “e-cigarettes containing no nicotine and making no therapeutic or smoking cessation claims”.

The World Customs Organisation’s seventh edition of the Harmonised Commodity Description and Coding System in the classification of products includes a new tariff headline for “products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; [and] other nicotine containing products intended for the intake of nicotine into the human body”. Read: India bans e-cigarettes as global backlash at vaping gathers pace Vaping may help tens of thousands quit smoking, UK study show Countries that are already regulating the use of e-cigarettes and have introduced taxes on vaping products include the US, the Republic of South Korea, the Philippines, Sweden, Latvia, Russia, and Kenya. Design of tax system for vaping products Designing a tax system for vaping products requires taking into consideration many factors, such as: Treasury has recommended the hybrid excise tax system, which has already been implemented in Latvia. Latvia has imposed an excise tax on e-liquid at €0.01 per ml and €0.

005 per 1mg of nicotine. Excise structure The excise structure to be implemented will have to address the following: Treasury cautions that a tax policy design must take into account the administrative feasibility of the tax system. The more complex a tax system, the greater the costs for the South African Revenue Service (Sars) to administer it and the greater the compliance costs for taxpayers. Treasury recommends the implementation of an excise regime with flat rates for liquid solutions and nicotine content. This would minimise the administrative costs of the tax system and reduce the compliance burden for taxpayers.

Written comments on the discussion paper can be submitted to Vaping_tax@treasury.gov.za by close of business next Tuesday (January 25). jQuery(document).on('click', 'a[href*="#to-comments"]', function (event) { event.

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