Regulatory News

The House of Representatives Commission for Public Safety and Combating Organized Crime held a public hearing to discuss the illegal entry of Paraguayan cigarettes in Brazil. It is estimated that the Brazilian government loses US$5.2 billion in taxes due to smuggling. According to a survey by the Federal Police, every two hours a vehicle carrying load of cigarettes without proven origin is seized. Just last year, the court ordered the destruction of 96 billion Paraguayan cigarettes seized.

Invited to the hearing, José Alberto de Freitas Iegas, delegate and Federal Police superintendent in Paraná - one of the states bordering Paraguay - said he believed there are public agency employees involved in the crime. "There's no way to talk about gangs and organizations without the participation of public officials. There is an accessory to the crime: corruption. The Federal Police have no doubt that this really happens," said Iegas.

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