Brazil's tax bureau strengthens supervision of e-cigarette sales, 22 companies suspended operations

Brazil's tax bureau strengthens supervision of e-cigarette sales, 22 companies suspended operations

Brazil's Federal Taxation Bureau has stepped up regulation of e-cigarette sales, suspended operations of 22 companies in Sao Paulo, and plans to expand the action in 2025. In 2024, Brazil's e-cigarette seizures reached $39 million, a four-fold increase from 2023.

According to G1.Globo on December 16, the Brazilian Federal Taxation Bureau has stepped up regulation of e-cigarette sales, and since October, 22 corporate tax numbers (CNPJ) in Sao Paulo have been suspended. The authorities said they plan to launch a wider action against unregistered small vendors in 2025, including product seizures and possible criminal prosecutions.

In 2024, the seizure of e-cigarettes hit a record high of 240 million reais (US$39 million), nearly four times the 63 million (US$10.25 million) in 2023.

Raphael Eugênio de Souza, the Federal Taxation Agency's general coordinator for combating smuggling and tax evasion, said the penalties imposed on companies are intended to deter them from repeating the offense. The suspension of a company's tax number prevents the company from operating normally, including being unable to operate bank accounts, issue invoices, and pay suppliers.

In addition, the tax agency warned that there is a link between the illegal e-cigarette market and the funding of organized crime. Small shops that buy smuggled goods are actually supporting criminal networks, which increase profits by diversifying illegal activities.

In addition, the authorities will step up their crackdown on e-cigarette sales on online platforms and applications.