Excise Duty Payable on Vaping Tobacco products from 1 June 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 June 2023.

The forms DA260 Excise Account for Tobacco Products in which the vaping products will be accounted for excise duty purposes were also amended accordingly to insert the vaping products. Manufacturers of these products are therefore required to apply for and obtain licenses for their manufacturing premises in respect of such products with SARS before 1 June 2023 and to submit their first excise duty account by 28 July 2023. Special storage warehouses in respect of such products should similarly be licensed with SARS before 1 June 2023. 

For more information, see the letter to Traders here.