The South African government announced yesterday it will propose a new tax on vaping products that will take effect next year.
The government stated its intention to tax e-liquid last year, issuing a discussion paper in December, and accepting public comment for several weeks.
The new tax proposal was outlined yesterday by South African finance minister Enoch Godongwana as part of a package of new and increased excise taxes on tobacco, alcohol and high-sugar products. The vaping tax will be included in the 2022 Taxation Laws Amendment Bill, and could be changed by Parliament before being finalized. The finance minister says it will be in place by Jan. 1, 2023.
The proposed tax rate would be “at least” 2.90 rand (about 18.9 U.S. cents) per milliliter, according to Godongwana. The proposed amount would add more than $11 to the price of a 60 mL bottle of e-liquid, or almost $19 to a 100 mL bottle. It would apply to all e-liquid, with or without nicotine.
Jim McDonald – Vaping360 – 2022-02-24.
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