“The South African unit of cigarette maker Philip Morris International Inc (PM.N) welcomed the government’s decision to introduce a lower excise tax on heated tobacco products than on regular cigarettes. Minister of Finance Tito Mboweni said, in line with Department of Health policy, his government will start taxing heated tobacco products. But he said the rate will be set at 75 per cent that of the tax on cigarettes. Electronic cigarettes, or so-called vapes, will only be taxed from 2021, Mboweni said. In July, Philip Morris opened its first flagship store in Johannesburg in an attempt to boost demand for its “reduced risk” heated-tobacco device IQOS. Vapour Products Association of South Africa (VPASA) has raised concerns about the excise for electronic vapor products, saying it will considerably increase the retail price of these electronic products, while at the same time hurting small to medium business owners.”
BILL TARLING — Tobacco companies support the vape taxes knowing it would eliminate most competition from consumer created vape companies since the smaller consumer companies make more advanced equipment and larger sized e-liquid products which would face much higher cost increases from the taxes than the Tobacco Companies cheaper quick sale versions of vape products.
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South African unit of Philip Morris welcomes tax stance on cigarette alternatives
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