New Vaping Tax May Yield R900m for Government
New Vaping Tax May Yield R900m for Government. The Vapour Products Association of South Africa has accused the government of implementing the new vaping tax solely for financial gain. The CEO of the association, Asanda Gcoyi, has stated that the tax, which takes effect on June 1st, will severely impact the vaping industry as reported by ENCA.
Gcoyi believes that the new tax will lead consumers back to cheaper tobacco products, despite vaping being a healthier alternative to smoking.
The National Treasury has introduced the tax in an effort to reduce the popularity of vaping and protect consumers from the potential dangers associated with these products.
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However, the Vapour Products Association claims that the government is being disingenuous and is simply seeking a new revenue stream, potentially generating R900 million in revenue from the tax.
The association warns that the industry will face higher operating costs and job losses.
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