Tarcísio should sanction law that combats illegal cigarettes – 03/12/2024 – Panel SA

The governor of São Paulo, Tarcísio de Freitas (Republicans), must sanction the law that tightens the crackdown on the smuggled cigarette industry in the state.

The sale of illegal products is already prohibited, but, to date, there is no effective punishment. Now, any establishment caught selling counterfeit or smuggled cigarettes will be fined and may be closed in the event of a repeat offense.

Deputy Vinicius Camarinha (PSDB-SP), author of the project, told Panel SA that the text was adjusted according to the government’s own guidelines and the expectation is that it will be sanctioned in full.

“The Treasury Department helped to correct some points of divergence [do projeto] and it was built with the direction that the government would like”, he said.

Establishments that are caught selling the illegal product will receive a warning during the first inspection.

In case of repeat offense, a fine of 100 UFESPs (fiscal units of the state of São Paulo) will be imposed — the equivalent of R$3,536.

The fine increases until the third repeat offense. On Wednesday, the establishment will be closed with the revocation of the state registration.

Ipec data estimates that more than R$100 billion was not collected in Brazil in the last 11 years due to tobacco piracy. Last year alone, the parallel market sold more than R$9.8 billion.

The forecast is that for every 100 cigarettes sold in the country, 36 are illegal, of which 27% are smuggled and 9% are produced by companies with a history of tax evasion.

“Around 85% of illegal cigarettes are sold in formal retail, according to this year’s Ipec Survey. The law approved in the Legislative Assembly of SP is important to contain this supply and stop the spread of crime”, says Edson Vismona, president of National Forum Against Piracy and Illegality.

The approval of the law has not yet been published in the Official Gazette. After publication, the governor will have 15 working days to sanction it.

With Diego Felix

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