Brazil's University Of Sao Paulo Study: Illegal E-cigarette Market May Cause $1.4 Billion in Tax Revenue Loss By 2025

Brazil's University of Sao Paulo study: Illegal e-cigarette market may cause $1.4 billion in tax revenue loss by 2025

A study by the Institute of International Relations (IRI) of the University of São Paulo in Brazil shows that Brazil could lose 7.7 billion reais (US$1.4 billion) in tax revenue in 2025 due to illegal e-cigarette trade. If appropriate taxation is implemented, it is expected that tax revenue will reach 10.3 billion reais (US$1.9 billion) by 2028.

According to Oparana Brazil could lose 7.7 billion reais ($1.4 billion) in state and federal taxes in 2025 due to illegal e-cigarette trade, according to a study conducted by the Multidimensional Security School (ESEM) of the University of São Paulo's International Relations Institute (IRI) on September 28.

The study maintains a conservative perspective on market growth and monthly consumption, arguing that if electronic cigarette devices (DEFs) are properly taxed, Brazil's tax revenue could reach 10.3 billion reais ($1.9 billion) by 2028. The study is based on a survey by the Minas Gerais Federation of Industries (FIEMG), which identified a potential market of 3.3 million e-cigarette users in Brazil.

Leandro Piquet, a professor at the University of São Paulo's Multidimensional Security School, said: Piquet explained, "The illegal trade in e-cigarettes relies on four pillars: prohibition, smuggling, corruption in public institutions and digital sales." "A special feature of this market is that most of its retail is carried out through the Internet, and even banned products can be easily purchased through digital channels." Researchers said that even in illegal situations, consumption continues to grow, which raises public questions about the effectiveness of current policies. They believe that appropriate regulations and taxes may be a more feasible solution that can both combat illegal markets and address related public safety issues.