Discussing the tax at a finance standing committee, BAT spokesperson Dane Mouyis said that according to their data, vaping products make up less than 0.5% of the overall market for vaping products. nicotine base in South Africa. However, he added, there are a disproportionate number of retailers making and selling their own e-liquids.
He said data from Oxford Economics revealed that for the tax to achieve its objective, a rate of 1.45 rand/ml would have to be the absolute upper limit of the duty. While Asanda Gcoyi of the Vapor Products Association of South Africa (VPASA) warned that the tax would lead to price increases for the consumer, and we could see the average price of vape products increase by 138% and the consumption of e -liquid drop 36%.
Tobacco Products Control and Electronic Delivery Systems Bill
Meanwhile, a new Tobacco Bill, which would replace the decade-long Tobacco Products Control Amendment Act, is being finalized. The Tobacco Product Controls and Electronic Delivery Systems Bill has been in the works since 2018 and was announced by Deputy Minister of Health Joe Phaahla in 2020. It would ban smoking in public spaces and implement place stricter regulations on e-cigarettes, which include restrictions. on the use, marketing and sale of certain tobacco products. Additionally, it would put in place a provision for the government to implement a “100% public smoking ban”.
The government’s inability to process the bill has frustrated public health experts, who say the country has fallen behind global best practice. The Tobacco Products Control Amendment Act 2008, which is currently in force, has not been updated for more than a decade and therefore contains no provision to regulate new generation products such as vapors.
Read more: Business Tech
New South African Tobacco and Vaping Bill introduced in Parliament