Assessing the Effects of the PL3887-2020 Tobacco Tax Reform (Report)

This Report was written by Universidade Católica Brasília (UCB) in Brazil. The report 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 report thoroughly discusses the proposed tax reform and the effect it would have on Brazil.


A Policy Brief based on the Report can be found here.