Vape tax from 1 June 2023 !

[Mr. B]

SARS published a letter to traders reminding them about the Vape Tax effective from 01 June 2023.

https://www.sars.gov.za/latest-news/taxing-of-vaping-tobacco-products-with-effect-from-1-june-2023/

 

[Nitro]

SARS published a letter to traders reminding them about the Vape Tax effective from 01 June 2023.

https://www.sars.gov.za/latest-news/taxing-of-vaping-tobacco-products-with-effect-from-1-june-2023/

R2.90 per ml tax. People are not gonna be able to afford buying juice anymore.

 

[Hooked]

SARS published a letter to traders reminding them about the Vape Tax effective from 01 June 2023.

https://www.sars.gov.za/latest-news/taxing-of-vaping-tobacco-products-with-effect-from-1-june-2023/

Firstly, nothing was said about vaping in the Budget speech.
Secondly, this appears to apply to manufacturers. What about retailers i.e. vape shops?
Methinks this whole thing is going to be a muddle of note!

 

[Quintusson]

Firstly, nothing was said about vaping in the Budget speech.
Secondly, this appears to apply to manufacturers. What about retailers i.e. vape shops?
Methinks this whole thing is going to be a muddle of note!

I didn't listen to the budget speech, so I cannot comment on the first. But on the second one, the tax is a once-off applied by the manufacturer but so they would need to increase their price then from say, R100 to R390 to compensate for that, so the retailer would then need to sell for R390 + their markup. Going to make juices completely unaffordable.

That is if the manufacturer is approved by SARS...

 

[Hooked]

I didn't listen to the budget speech, so I cannot comment on the first. But on the second one, the tax is a once-off applied by the manufacturer but so they would need to increase their price then from say, R100 to R390 to compensate for that, so the retailer would then need to sell for R390 + their markup. Going to make juices completely unaffordable.

That is if the manufacturer is approved by SARS...

@ivc_mixer
Ahhhh I see ... I thought the retailers would be responsible for paying the tax to SARS.

What do you mean by "if the manufacturer is approved by SARS" is there a screening process for juice-makers? ??? And if so, what are the criteria?

 

[Quintusson]

is there a screening process for juice-makers?

Yes there is:

And if so, what are the criteria?

No idea, but someone like me who mixes from home will not get such a license.

 

[Paul33]

Yes there is:

View attachment 271468


No idea, but someone like me who mixes from home will not get such a license.

Any idea how this will affect us diy'ers who mix for ourselves at home?

I wonder what diy products they are going to tax and how?

 

[Faiyaz Cheulkar]

I got an email from BlckVapour, saying vape is going to be taxed, by the first look I thought its one those "sign this petition" emails. But no, its really happening.

Taxing of Vaping Tobacco products with effect from 1 June 2023 | South African Revenue Service

4 April 2023 – The Minister of Finance announced in the 2022 Budget on 23 February 2022 that excise duty on vaping tobacco products would be introduced. Nicotine and nicotine-substitute solutions in vaping products will be included in the tax net with a flat excise duty rate of R2.90/ml from 1...

www.sars.gov.za

 

[Quintusson]

Any idea how this will affect us diy'ers who mix for ourselves at home?

I wonder what diy products they are going to tax and how?

Nicotine will be taxed, so if you paid R200 for 100ml, you will now pay R490 for 100ml

 

[Nitro]

Imagine towards the time this happens people will be stocking up like crazy on their favorite juices.

 

[Paul33]

Nicotine will be taxed, so if you paid R200 for 100ml, you will now pay R490 for 100ml

Holy hell!!

 

[Mollie]

Nicotine will be taxed, so if you paid R200 for 100ml, you will now pay R490 for 100ml

Eina

 

[Quintusson]

I think the bigger stores who can stock up will do so and offer juices at pre-tax rates while they can, thus drawing more clientelle. Remember, it's only applicable from 01 June, so anything purchased before then is not subject to the tax, as it is not levied by the retailers but by the manufacturers

 

[Hooked]

Yes there is:

View attachment 271468


No idea, but someone like me who mixes from home will not get such a license.

@ivc_mixer It doesn't specify what type of "maufacturing premises". Just state your address and see what happens. They want the money, so I doubt that they will care if the manufacturing premises are at your home!

 

[Hooked]

@admin Is it possible to move the above threads about vape tax (from #1341) to this thread https://www.ecigssa.co.za/threads/vape-tax-from-1-june-2023.78311/#post-990406, so that all discussions re vape tax can be in one thread?

 

[X-Calibre786]

Do we know if this applies only to vape juices or also to the PG, VG and nicotine that we use for DIY? I may need to stock up on those supplies if it does apply.

 

[Quintusson]

Do we know if this applies only to vape juices or also to the PG, VG and nicotine that we use for DIY? I may need to stock up on those supplies if it does apply.

PG, VG, no. Nicotine, yes.

 

[Viper_SA]

So 0mg should be the same as before? If so.... I'm going that route. Just hope the manufacturers make 0mg then.

 

[Jengz]

So 0mg should be the same as before? If so.... I'm going that route. Just hope the manufacturers make 0mg then.

Nope

See the part I highlighted

 

[Viper_SA]

Nope View attachment 271491

See the part I highlighted

It's ridiculous amounts. I can live with per bottle, but per ml at that amount is outrageous.

 

[Adephi]

So MTL is the future then.

 

[Quintusson]

One of my big gripes is this. They want to get kids to stop vaping, right? What do kids vape? 120ml/100ml/60ml bottle juices? NO. They vape disposables. What will the tax be on a disposable. R6, R9, maybe R12. That's not going to stop them. So who gets punished by this? Adults like me.

 

[Jengz]

The tax is 5 times more than the cost of a bottle. Ludicrous

 

[Viper_SA]

Wasn't there talk of a R346 cap at some stage? Which would still mean the average 120ml would cost R250 + R346.... I see a lot of one-shots on the market soon... Hopefully.

 

[Faiyaz Cheulkar]

One of my big gripes is this. They want to get kids to stop vaping, right? What do kids vape? 120ml/100ml/60ml bottle juices? NO. They vape disposables. What will the tax be on a disposable. R6, R9, maybe R12. That's not going to stop them. So who gets punished by this? Adults like me.

These disposables are the reason for this tax. I knew that once vaping becomes big they are going to implement taxes and these disposables did that.
They should have banned disposables instead, it's not good for the environment anyways.