Brazil’s Federal Tax agency has tightened controls on vape sales, suspending the operations of 22 businesses in Sao Paulo, with plans to expand action in 2025. In 2024, vape seizures in Brazil reached $39 million, a four-fold increase from 2023.
According to a report by G1. Globo on December 16. Brazil’s Federal Tax Agency has tightened its supervision of vape sales, and 22 corporate tax codes (CNPJ) in Sao Paulo have been suspended since October. The government has said it plans to take broader action against unregistered small traders in 2025, including seizure of goods and possible criminal proceedings.
In 2024, vape seizures hit a new high of 240 million reais ($39 million), nearly quadrupling from $63 million ($10.25 million) in 2023.
Raphael Eugenio de Souza, general coordinator for combating smuggling and tax evasion at the Federal Tax Agency (FTI), said the penalties against the company were aimed at deterring repeat violations. The suspension of the corporate tax ID will prevent the normal operation of the business, including the inability to operate bank accounts, issue invoices and pay suppliers.
In addition, the tax office also warned that the illegal vape market is linked to the funding of organized crime. Small shops buying smuggled goods are supporting criminal networks that increase their profits by diversifying their illegal activities.
In addition, the government will increase the crackdown on online platforms and applications.
