dc.contributor.author |
Agaku, Israel Terungwa
|
|
dc.contributor.author |
Egbe, Catherine
|
|
dc.contributor.author |
Ayo-Yusuf, Olalekan Abdulwahab
|
|
dc.date.accessioned |
2022-09-21T04:40:38Z |
|
dc.date.available |
2022-09-21T04:40:38Z |
|
dc.date.issued |
2021 |
|
dc.description.abstract |
INTRODUCTION : To inform policy making under the proposed The Control of Tobacco and Electronic Delivery Systems Bill, we compared annual costs of using e-cigarettes versus cigarettes, and estimated revenue from e-cigarette taxation. METHODS : We extracted e-cigarette retail prices from 231 South African e-cigarette vendor websites. We compared annual costs associated with daily cigarette smoking (self-reports from daily smokers in the 2018 South African Social Attitudes Survey, SASAS) versus daily e-cigarette use (based on cumulative costs of consumables plus device costs). We estimated revenue from excise tax if e-cigarettes were taxed at 75% (the rate proposed by the government) and 37.5% (half of the government’s proposal as a hypothetical scenario) of the cigarette excise rate. We applied the different rates to e-cigarette consumption in 2018 SASAS and projected for 2021. RESULTS : Mean annual cost associated with daily use was ZAR 6693 (US$460.32, based on an exchange rate of about 69 US$ to 1000 ZAR) for manufactured cigarettes; for e-cigarettes, this ranged from ZAR 8574.69/year (with price minimizing strategies) to ZAR 19780.83/year (retail products exclusively). Expected revenue from e-cigarette excise tax at 75% of the cigarette tax rate was up to ZAR 2.20 billion (95% CI: 0.96–3.44). If taxed at 37.5% of the cigarette tax rate – half of the government’s proposed rate – the projected revenue was up to ZAR 1.10 billion (95% CI: 0.48–1.72). Of the projected revenue from e-cigarette excise tax at 75% of the cigarette rate, the portion attributable to hardware (device and batteries) was 61% (ZAR 1.35 billion), while the portion attributable to e-liquid was 39% (ZAR 0.86 billion). CONCLUSIONS : Calculated daily costs were higher for e-cigarettes than cigarettes. We recommend an e-cigarette excise tax. The government’s proposed tax rate may reduce youth e-cigarette access, while allowing adult smokers wishing to switch exclusively to e-cigarettes to reduce their tobacco-related harm. |
en_US |
dc.description.department |
School of Health Systems and Public Health (SHSPH) |
en_US |
dc.description.librarian |
dm2022 |
en_US |
dc.description.sponsorship |
African Capacity Building Foundation |
en_US |
dc.description.uri |
http://www.tobaccoinduceddiseases.org |
en_US |
dc.identifier.citation |
Agaku, Israel & Egbe, Catherine & Ayo-Yusuf, Olalekan. (2021). Potential revenue from taxing e-cigarettes and comparison of annual costs of daily e-cigarette use versus daily cigarette smoking among South African adults. Tobacco Induced Diseases. 19. 1-14. 10.18332/tid/131861. |
en_US |
dc.identifier.issn |
1617-9625 (online) |
|
dc.identifier.other |
10.18332/tid/131861 |
|
dc.identifier.uri |
https://repository.up.ac.za/handle/2263/87234 |
|
dc.language.iso |
en |
en_US |
dc.publisher |
International Society for the Prevention of Tobacco Induced Diseases |
en_US |
dc.rights |
© 2021 Agaku I.T. et al. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International
License. |
en_US |
dc.subject |
Cost |
en_US |
dc.subject |
Taxation |
en_US |
dc.subject |
E-cigarettes |
en_US |
dc.subject |
Sales |
en_US |
dc.subject |
Adults |
en_US |
dc.subject |
South Africa (SA) |
en_US |
dc.title |
Potential revenue from taxing e-cigarettes and comparison of annual costs of daily e-cigarette use versus daily cigarette smoking among South African adults |
en_US |
dc.type |
Article |
en_US |