Treasury to kick off consultative process on e-cigarette taxation

In a statement, the Treasury said: “Government is concerned about the potential long term health harm related to the use of these products”.

The National Treasury will later this month kick off a consultative process on the taxation of electronic cigarettes from 2021.

This comes after Finance Minister made the announcement in the 2020 Budget.

In a statement, the Treasury said: “Government is concerned about the potential long term health harm related to the use of these products”.

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.

The Treasury said these products, also known as electronic cigarettes (e-cigarettes), are battery-powered devices that do not burn or use tobacco leaves but instead vaporize 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 flavoring chemicals that may be toxic to people’s health,” read the statement.

“Globally, there is growth in the marketing and use of ENDS/ENNDS, and in some instances, high consumption of these products is amongst the youth.”

In South Africa, the marketing and distribution of ENDS/ENNDS are still unregulated and there are signs that the use of these products is growing.

To begin the consultation process on the treatment of electronic cigarettes, the National Treasury has invited the public to attend a consultation workshop hosted jointly with the National Department of Health.

The workshop will be held at the Development Bank of Southern Africa, in Midrand, on March 25, between 9 am and 11 am. 

(With Inputs from South African Government Press Release)