Regulatory News

The government postponed the Industrialized Product tax increase (IPI) on cigarettes till next year. Initially planned to go into effect in December, the tax increase would give at least a 20% increase in price on the product.

The executive secretary for the Ministry of Finance, Nelson Barbosa, said the postponement meets a request from manufacturers. According to him, the tobacco industry asked for more time before implementing the measure.

“Since this is an important change which includes reviewing decisions for production, investment, and marketing, the industry asked for a delay in the increase till 2012 instead of December. A set date will be announced in the near future,” said Barbosa.

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