Brazil's E-Cigarette Ban Potential Tax Revenue Increase Discussion

Regulations by 2FIRSTS.ai
May.21
Brazil's E-Cigarette Ban Potential Tax Revenue Increase Discussion
Brazilian e-cigarette ban may increase government tax revenue by $660 million annually, sparking debate in a public hearing on legislation.

According to a report by Poder360 on May 20, the e-cigarette ban in Brazil may result in the government's annual import tax revenue increasing by 3.4 billion reais (6.6 billion US dollars). These figures come from a study commissioned by British American Tobacco by the Federation of Industries of Minas Gerais (Fiemg) in Brazil.

 

The National Health Surveillance Agency of Brazil (Agência Nacional de Vigilância Sanitária) previously banned the production, sale, distribution, storage, transportation, and promotion of e-cigarette devices domestically. However, according to a survey by the Brazilian polling agency Ipec in 2023, there are still approximately 2.9 million users nationwide. The agency stated that, based on the number of users, if the domestic tobacco industry were to take over production and distribution to meet Brazil's demand, it could create 124,500 new formal and informal jobs, with the tobacco cultivation industry alone providing 12,950 jobs.

 

This material is based on a potential demand estimated by the latest survey by Ipec for 3.5 million Brazilian consumers per year, which would represent a market of 10.5 billion reais (2.05 billion dollars) per year.

 

On the afternoon of May 21, Brazil will hold a joint public hearing to discuss a bill (PL 5.008/2023) regarding the production, import, export, sale, control, supervision, and promotion of e-cigarettes.

 

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