Illegal cigarette loses space in the consumption of smokers – 04/10/2023 – Panel SA

The share of illegal cigarettes in the total consumed by smokers in the country fell from 48% in 2021 to 41% last year, according to the new edition of the annual survey on the subject released by the FNCP (National Forum Against Piracy).

Of the total, 33% was smuggled, mainly from Paraguay, and 8% was produced in Brazil, most of it by so-called persistent debtors, who do not pay taxes, according to data from the survey.

Estimated losses are around BRL 8.3 billion in tax evasion, according to the FNCP, which attributes the drop in illegal market share to the rise in pirate cigarettes in recent years due to factors linked to the high dollar and the pandemic.

The assessment of the sector, which is pressing for a drop in taxation of legalized cigarettes, is that the pirated product lost attractiveness because its prices were closer to the competitor of original brands.

According to the FNCP, the original cigarette, which already cost 118% more than the pirated one in 2019, today exceeds it by only 50%, a movement that could be accentuated with a drop in taxation, in the opinion of the sector.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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