Vaping tax | Government could pocket R900m from new tax

JOHANNESBURG - The Vapour Products Association of South Africa says that government implemented the new vaping tax for its own gain.

According to CEO Asanda Gcoyi, the new tax -- which comes into effect on 1 June -- will cripple the vaping industry.

READ: Budget 2023 | No major tax increases expected

Gcoyi says that vaping is a healthier alternative to smoking cigarettes, but the new tax will push consumers back to cheaper tobacco products.

The National Treasury gazetted a tax on electronic nicotine and non-nicotine devices on the premise that it would curb the growing popularity of vaping and protect consumers from the potential harm these products pose.

READ: New smoking laws to affect vaping industry

The association says government is being disingenuous and is simply looking for a new revenue stream.

Gcoyi says government could rake up R900-million in revenue from the new tax. 

She says the industry will have to deal with higher operating costs and jobs will be lost.