Assessing the Effects of the PL3887-2020 Tobacco Tax Reform (Policy Brief)
This Policy Brief was written by Universidade Católica Brasília (UCB) in Brazil. The policy brief assesses the impact of recently proposed tobacco tax reforms on cigarette consumption and tax revenues in Brazil. Specifically, UCB discusses Bill PL3887-2020, the proposed legislation which would replace the current PIS/COFINS with the CBS (Social Contribution on Operations with Goods and Services). The researchers conclude that this reform would increase cigarette prices, decrease consumption, and increase tax revenue, while decreasing the price gap between cigarette brands and cross-border shopping. This policy brief thoroughly discusses the proposed tax reform and the effect it would have on Brazil.
A corresponding Report can be found here.
October 2020
Location(s): Brazil, Latin America and the Carribbean
Project: Think Tanks Project: Accelerating Progress on Tobacco Taxes in Low- and Middle-Income Countries
Content Type: Policy Brief
Topic(s): Economic impacts of tobacco control, Impact on demand, Prevalence and consumption, Tax and price, Tax levels and structure, Tobacco taxes revenues, Tobacco use
Authors(s): José Angelo Costa do Amor Divino, Ph.D., Philipp Ehrl, Osvaldo Candido, Marcos Valadão
Citation