< Back to Heated Tobacco Products Tax Gap Map
Tax Gap of Heated Tobacco Products in South Africa
Until 2019, emerging tobacco products (e.g., heated tobacco, e-cigarettes) were not subject to excise taxation. In February 2020, the Ministry of Finance announced, with the release of the National Budget for 2020, that a new tax rate equal to 75% of the tax rate on cigarettes would be applied to heated tobacco, effective April 1st, 2020 (FY 2020/21). A pure specific excise tax based on the number of sticks is applied to heated tobacco. As of April 1st, 2023, the excise rate for heated tobacco is ZAR 15.6 per 20 sticks.
For cigarettes, the tax system is a pure specific excise system. Since April 1st, 2023, the tax per pack of 20 cigarettes is ZAR 20.8.
There is also an import duty of 45% of the cost, insurance, and freight (CIF) price of all imported tobacco products.
Sources:
Last updated Sept. 1, 2023