Increasing the Cigarette Minimum Price Would Enhance the Effectiveness of Brazil’s Tobacco Tax Policy

This Policy Brief was written by Universidade Católica Brasília (UCB) in Brazil. The policy brief examines the minimum cigarette price and cigarette tax policies in Brazil. The current minimum legal price of BRL 5.00 has not been adjusted since 2016 and is no longer a useful tool to distinguish between the licit and illicit market. Cigarettes are sold at similar, very low prices in both markets. As a result, the minimum price is also not sufficient to reduce affordability or consumption of cigarettes. The policy brief concludes with recommendations for effective tobacco tax policies that would reduce consumption and raise revenues without an increase in illicit cigarette consumption. 

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A corresponding Working Paper and additional Policy Brief can be found here and here, respectively.