Vaping Tax Increase 2025 – Everything You Need to Know

The South African vaping industry is facing another financial challenge as the government increases the excise duty on vaping products. During the 2025 Budget Speech delivered on 12 March 2025, Finance Minister Enoch Godongwana announced an increase in the excise duty on electronic nicotine and non-nicotine delivery systems (ENDS). This tax hike, which is adjusted in line with inflation, takes effect immediately.

What Has Changed?

The excise duty on vaping products has risen from R3.04 per millilitre to R3.18 per millilitre for the 2024/25 financial year. While this may seem like a small increase, it adds up significantly for vapers who rely on larger e-liquid bottles. For example, a 100ml bottle of e-liquid will now be taxed at R318, making vaping a more expensive alternative for consumers.

Why the Increase?

The South African government has maintained its stance that vaping products should be taxed similarly to traditional tobacco products. The excise duty was first introduced in 2023 as part of a broader effort to regulate the industry and generate additional revenue. This latest increase is in line with inflation adjustments, ensuring that the tax keeps pace with economic changes. Additionally, the government cites public health concerns, particularly youth vaping, as a key driver behind the tax hike.

What Does This Mean for Vapers?

Higher Prices: E-liquid prices are expected to increase as retailers adjust to the higher excise duty.
Impact on Retailers: Vape shops and distributors may experience shifts in demand, particularly for larger bottles of e-liquid.
Affordability Concerns: For smokers looking to transition to vaping as a harm reduction alternative, increased costs could make the switch less appealing.
Possible Market Changes: Some vapers may turn to alternative sources, including illicit or unregulated products, to avoid the rising costs. This could pose risks in terms of product safety and quality.

Opportunity to Have Your Say

The Standing Committee on Finance has issued a call for comments from stakeholders interested in making representations about revenue proposals, including the excise increase on vaping products.

You can submit your comments at this link.
The deadline for submissions is 24 March 2025.
Oral hearings will take place on 25 March 2025, and only those who indicate an interest in making oral representations will be invited.

How the Industry is Responding

The vaping community and industry leaders continue to advocate for fair regulation that supports harm reduction while preventing excessive taxation. Vape businesses are also exploring strategies such as offering smaller bottle sizes, expanding product options, and educating customers on the long-term cost benefits of vaping compared to smoking.

Final Thoughts

While the new tax increase is in effect immediately, its full impact on the industry will unfold in the coming months. As always, Vape King remains committed to providing customers with high-quality vaping products at competitive prices, despite the challenges imposed by tax hikes. We will continue to monitor the situation and keep you updated on any further regulatory changes.

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