Analysis shows introducing a tax will simply invite the onset of an illicit market
The National Treasury is expected to introduce a tax on electronic nicotine and non-nicotine delivery systems — known colloquially as vaping devices — from January 1.
During his delivery of the 2022-2023 budget speech finance minister Enoch Godongwana made it clear that the tax would have already been introduced if it had been up to him.
The proposed tax is ostensibly meant to curb the growing popularity of vaping because of the potential harm these products pose. In its discussion document released in December the Treasury approvingly quoted the World Health Organization (WHO), which continues to maintain more than 15 years after the products entered the market that not enough is known about their health consequences.
Asanda Gcoyi – BusinessLIVE – 2022-06-06.
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