Excise duty and the illicit cigarette market in Brazil

报告摘要

The report, commissioned by British American Tobacco examines the relationship between cigarette excise duty, prices and the illicit cigarette market in Brazil. It compares three periods of policy: substantial increases in excise duty between 2010 and 2017, broadly stable excise rates between 2017 and 2023, and renewed increases from 2024 onwards. The analysis focuses on changes in duty-paid and illicit cigarette consumption, price differentials and tax revenues, and considers the role of illicit supply, particularly from Paraguay.