Insect repellent pays almost 40% tax; IBPT defends tax immunity

Amidst the country’s declaration of a state of emergency due to dengue and the greater number of infections from the disease this year, the Brazilian Institute of Planning and Taxation (IBPT) announced this Monday (1st) that the tax burden on insect repellents reaches to 39.47%, making the product more expensive and limiting access to the general population.

The high tax burden is especially worrying when compared to other products that are not extremely necessary for Brazilians, such as pay TV (24.20%), chocolate (39.61%) and beer (42.69%).

This excessive taxation has generated criticism and raised questions about the accessibility of these essential items for the population, especially for those in vulnerable situations.

The executive president of IBPT, João Eloi Olenike, states that although repellents are essential for protection against diseases such as dengue, they are still subject to taxation as high as products considered less essential.

“Unfortunately, the taxation of these items, such as the much-needed repellent, means that, due to the high price, they cannot be purchased in large quantities by the neediest population. Certainly, this attitude greatly contributes to Brazil having one of the worst quality of life, reflected in our low Human Development Index (HDI) among all nations in the world”, he pointed out.

Olenike emphasized the importance of policies that guarantee the accessibility of repellents, highlighting that excessive taxation of these items compromises the social rights provided for in the Federal Constitution, such as the right to health.

He also defends that the product has a reduced or even exempt tax burden, remembering that even “medicines for human use”, according to the institute’s table, are taxed at 33.87%.

“The country is a ‘latter’ when it comes in last place, that is, with the worst return to citizens on investments aimed at improving the quality of life of Brazilians, given the significant tax collection. The main reason for this vexatious situation in our country is the failure to direct the resources collected towards more important objectives such as the rights guaranteed by our Greater Law”, he added.

Also according to the executive president of IBPT, the urgency for accessibility in the prices of repellents is a necessary protective measure. According to the Ministry of Health’s Arbovirus Panel, 2.4 million probable cases of dengue have already been recorded, with 897 confirmed deaths and 1,300 under investigation.