The South African vape tax explained

If vapes feel pricier than they did three years ago, part of the answer sits in the Budget. South Africa taxes vaping liquid by volume, and the rate has gone up every February since it was introduced. Here is how it works in plain terms.

What the vape tax is

Since 1 June 2023, SARS has charged an excise duty on vaping products, both nicotine and nicotine free, worked out per millilitre of liquid (SARS, taxing of vaping products from 1 June 2023). It is a flat amount per ml, not a percentage of the price, so a cheap liquid and a premium liquid of the same volume pay the same duty. VAT at 15% is then charged on top of the duty inclusive price.

The 2026 rate

The 2026 Budget raised the duty from R3.18 per ml to R3.29 per ml, effective 25 February 2026, in line with the 3.4% increase applied to alcohol and tobacco (National Treasury, 2026 Budget Review, Annexure C, Table C.4; SARS Budget 2026 FAQ). For scale, a 10 ml bottle of liquid now carries R32.90 of excise before VAT. A disposable is taxed on the liquid sealed inside it, so a device with more liquid carries more duty.

How it has climbed

The duty is adjusted on Budget Day each year, so expect another change in February 2027.

What it means for your wallet

1. Longer life devices spread the duty over more puffs. The tax per ml is the same, so a rechargeable device that uses its full reservoir gives you more for the duty paid than a disposable whose battery dies with liquid left inside.
2. Suspiciously cheap vapes are a warning sign. If a device sells for far less than the duty and VAT alone would justify, the duty may not have been paid, which usually means it did not come through legal channels. We cover how to spot fakes later in this series.
3. Shelf prices vary by store. Retailers set their own prices, so the same E-XHALE device can cost different amounts in different shops. The price on e-xhale.com is the one we control.

Common questions

Is there VAT on vapes as well as excise? Yes. Excise is built into the price and VAT at 15% applies on top.

Does the vape tax apply to nicotine free liquid? Yes. The duty covers nicotine and nicotine free vaping liquid at the same rate.

Is the vape tax the same as the cigarette tax? No. Cigarettes are taxed per stick and vaping liquid per millilitre. The 2026 cigarette rate is R11.79 per 10 cigarettes (Treasury Annexure C 2026).

E-XHALE products contain nicotine, which is addictive. Not for sale to persons under 18. Figures as at 2 November 2026.