Dear Members of the Standing Committee on Finance,

I am writing to formally express my strong opposition to the recently announced increase in excise duty on vaping products, which has risen from R3.04 to R3.18 per millilitre for the 2024/25 financial year. While this may appear to be a marginal increase, the cumulative effect is significant, making vaping a less accessible alternative to smoking and disproportionately impacting consumers who have transitioned to vaping as a harm reduction tool.

The scientific consensus is clear: vaping is a significantly safer alternative to smoking traditional cigarettes. According to Public Health England (PHE), vaping is at least 95% less harmful than smoking. This finding has been supported by studies from institutions such as the Royal College of Physicians and the National Academies of Sciences, Engineering, and Medicine (NASEM), which conclude that while not risk-free, vaping drastically reduces exposure to the toxic and carcinogenic substances found in combustible tobacco products.

The justification for heavy taxation on smoking products has always been the overwhelming public health costs associated with smoking-related diseases, including lung cancer, cardiovascular disease, and chronic obstructive pulmonary disease (COPD). However, vaping does not contribute to these conditions at the same magnitude, making excessive taxation on vaping products a misguided policy that ultimately deters smokers from making a switch to a healthier alternative.

Moreover, heavily taxing vaping products contradicts South Africa’s broader public health objectives. Countries like New Zealand and the United Kingdom have actively encouraged vaping as a smoking cessation tool, recognizing its potential to reduce smoking prevalence. In contrast, South Africa’s approach places unnecessary financial barriers on those attempting to quit smoking. By making vaping prohibitively expensive, the government is inadvertently pushing individuals back toward combustible cigarettes, which remain readily available.

The economic ramifications of this excise duty increase are also concerning. The local vaping industry provides employment opportunities to thousands of South Africans in retail, manufacturing, and distribution. Higher taxes threaten small businesses and discourage further investment in an industry that could otherwise support economic growth and job creation.

I urge the Standing Committee on Finance to reconsider this excise duty increase, taking into account both the public health benefits of vaping and the economic impact on consumers and businesses. Instead of punitive taxation, South Africa should adopt a harm reduction approach that encourages smokers to switch to safer alternatives. I would welcome the opportunity to participate in further discussions on this matter during the oral hearings on 25 March 2025.

Thank you for your time and consideration. I trust that the government will take a rational, evidence-based approach to regulating vaping products rather than imposing unnecessary financial burdens on those seeking healthier alternatives.

Sincerely,