Regulatory News
August 07
A survey carried out by the National Forum Against Piracy pointed out that last year, contraband cigarettes, mainly from Paraguay, reached more than 50% of the markets in 15 of Brazil's 26 states. In five of them, participation was over 60%: 78% in Mato Grosso do Sul, 72% in Bahia, 69% in Mato Grosso, 67% in Pará and 60% in Maranhão

The state with the lowest proportion of illegal cigarettes was Rio de Janeiro, with 20%. According to the National Forum against Piracy, in 2016, the loss of revenue from tobacco smuggled across the country was R$8.7 billion (US$2.8 billion).
August 01
The smuggled cigarette market continues to grow in Brazil at a disturbing rate. According to research by Euromonitor International, the country is the second largest consumer of illegal cigarettes in the world, with an average of 41% of the total sold in its territory, being surpassed only by Malaysia, with 51%.

The same survey indicates that, last year, illegal trade in tobacco increased by 8%, while legal sales fell by 14%. The economic crisis facing the country is one of the reasons for this growth because the smuggled the product is cheaper due to lack of taxes which are normally high.

However, there are also flaws in surveillance, even with investigations such as the one that arrested 10 people at the end of June, dismantling an international smuggling ring that was making R$22 million ($7 million in US dollars) a month.
July 24
Cigarettes are the most seized contraband product in Brazil. It is estimated that, in a year, the country loses almost R$6.5 billion (US$2.1 billion) in taxes. Most of this contraband comes in through Paraguay, which borders the states of Mato Grosso do Sul and Paraná.

According to data from the Federal Highway Police, in the first half of this year 20.6 million packs were smuggled in to Mato Grosso do Sul alone, surpassing the total amount collected in 2016.

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