According to CEO Asanda Gcoyi, the new tax -- which comes into effect on 1 June -- will cripple the vaping industry. Asanda Gcoyi says that vaping is a healthier alternative to smoking cigarettes, but the new tax will push consumers back to cheaper tobacco products. The National Treasury gazetted a tax on electronic nicotine and non-nicotine devices on the premise that it would curb the growing popularity of vaping and protect consumers from the potential harm these products pose.
The association says government is being disingenuous and is simply looking for a new revenue stream. Gcoyi says government could rake up R900-million in revenue from the new tax. She says the industry will have to deal with higher operating costs and jobs will be lost.
