Treasury to meet with a view on mapping out vape tax

In a move to make good on Finance Minister Tito Mboweni’s 2020 Budget Speech promise, the National Treasury will kick off a consultative process later this month with a focus on the taxation of electronic cigarettes to be implemented in 2021.

“Government is concerned about the potential long-term health harm related to the use of these products,” said the department in a statement.

In recent years, new generation products such as electronic nicotine delivery systems (ENDS) and electronic non-nicotine delivery systems (ENNDS) have been introduced in the market.

These products, also known as electronic cigarettes (e-cigarettes), are battery-powered devices that do not burn or use tobacco leaves but instead vaporise an e-liquid solution to create an aerosol which the user then inhales.

“The e-liquid contains nicotine/non-nicotine and other chemicals and/or flavouring chemicals that may be toxic to people’s health. Globally, there is growth in the marketing and use of ENDS/ENNDS, and in some instances, high consumption of these products are amongst the youth.”

Treasury also expressed concern about how the marketing and distribution of ENDS/ENNDS was still unregulated in South Africa and said they believed there were signs that the use of these products was growing.

Treasury invites the public to attend a consultation workshop hosted jointly with the national department of health. The workshop will be held at Development Bank of Southern Africa, in Midrand, on 25 March, between 9am and 11am.

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