According to a study by the Sao Paulo Institute of International Relations (IRI), Brazil could lose 7.7 billion reais ($1.4 billion) in taxes due to the illegal trade of vapes in 2025 and is expected to reach 10.3 billion reais ($1.9 billion) by 2028.
University of São Paulo, Brazil study:
A study by the (IRI) Multidimensional Security Institute (ESEM) shows that Brazil could lose 7.7 billion reais ($1.4 billion) in state and federal taxes in 2025 due to the illegal trade in vapes.
From the perspective of maintaining market growth and traditional monthly consumption, it is believed that if viewed from the perspective of vape devices, (DEFs) Brazil’s fiscal revenue could reach 10.3 billion reais ($1.9 billion) by 2028. The study was based on a survey by the Federation of Industries of the state of Minas Gerais (FIEMG), which identified a hidden market of 3.3 million vape users in Brazil.
Leandro Piquet, a professor at the Multidimensional Security Institute at the University of Sao Paulo,
- “The illegal vape trade relies on four pillars: prohibition, smuggling, corruption in public institutions, and digital sales.”
- “One of the special things about this market is that most of its retail is done over the Internet, and even banned items are easily purchased through digital channels.”
The researchers said consumption continued to grow even under illegal conditions, raising questions among the public about the effectiveness of current policies. They argue that appropriate laws regulations and taxes may be a more viable solution to not only combat the illegal market but also address related public safety concerns.
