Regulatory News

The government decided to increase taxes on cigarette prices from 60% to 81% and further established a minimum price on the sale of packs. The measure was taken at the same time there was a decrease in tariffs on various products as part of the Greater Brazil Plan (Plano Brasil Maior) aiming to protect domestic industry from import competition.

According to Marcelo Fisch, General Inspection of the Internal Revenue Service, setting a minimum was a way to prevent irregularities. “Anyone who sells cigarettes at R$1 or R$1.50 will not be able to make a profit while paying all the taxes. This is a clear indication of tax evasion or even contraband,” he said.

The seller who does not follow the minimum amount provision will have products seized and will be prohibited to sell cigarettes for a period of five years.

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