Tuesday , August 9 2022

Government creates a working group to evaluate the reduction of cigarette taxes Economy


The federal government decided to create a working group, within the Ministry of Justice and Public Safety, to evaluate the "convenience and opportunity to reduce cigarette taxation manufactured in Brazil."

According to the ordinance signed by the Minister of Sergio Moro, announced Tuesday in the.

The cigarette is among the most taxed products in the country. The current tax burden for cigarettes in Brazil is around 80%.

According to the ordinance, the working group will seek to conduct studies:

  • on taxing cigarettes produced in Brazil;
  • to propose amendments to the tax and tax policy on cigarettes produced in Brazil;
  • offering measures with the aim of reducing the use of low quality foreign cigarettes and smuggling, which already occupies a significant part of the Brazilian market, with damage to tax collection and public health;
  • find out whether reducing the taxation of cigarettes produced in Brazil could avoid the use of low quality foreign cigarettes as well as smuggling and whether such a measure could lead to an increase in tobacco use;
  • propose improvements to existing standards or publish supplementary standards which may be necessary to effectively implement the proposed measures.

The group will include representatives from the Federal Police, National Consumer Secretariat, Special Advisory for Legislative Affairs, representatives of the Ministry of Economy and the Ministry of Health, as well as researchers and visiting experts.

According to the ordinance, the group's final report of work should be submitted to the Minister for Justice and Public Safety within 90 days.

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