Research

Assessing Tobacco Tax Reform and Effects of the Illicit Market in Brazil (Report)

This Report was written by Universidade Católica Brasília (UCB) in Brazil. The report assesses the impacts of recently proposed tobacco tax reforms on cigarette consumption and tax revenues in Brazil. In addition, researchers simulated a decrease in the illicit cigarette market within each scenario to demonstrate the positive effects of stronger tax administration on total tobacco tax revenue. UCB finds that each of the proposed reforms would decrease cigarette consumption, increase tax revenues, and reduce the current fiscal imbalance in Brazil.  This report provides options for effective tobacco taxation reform in Brazil and highlights the importance of controlling the illicit market to maximize government revenue.

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Policy Briefs based on the report can be found here and here.