Tax Reform and Selective Tax on Alcoholic Beverages in Brazil [Working Paper Series]

This Working Paper was written by Universidade Católica Brasília (UCB) in Brazil. The working paper analyzes the impact of alternate selective tax rates in the context of Brazil's ongoing comprehensive tax reform on alcoholic beverage prices, consumption, and tax revenues. Specifically, the researchers focus on beer because it is the most commonly consumed alcoholic beverage and assume a value-added tax of 27%. The findings suggest that the selective tax on beer should be at least 34.3% to prevent any individual state from losing tax revenues. Furthermore, tax collection would be maximized with a selective tax rate of 110.4%. The working paper concludes with additional recommendations for the tax reform such as using tax revenues from the selective tax to support the public health system.

A Working Paper analyzing the impact of tax reform scenarios on tobacco can be found here.