S. Para stopped collecting about 30 million dollars In ICMS (a tax on commodity and services trading), due to Illegal commercial cigarettes. These products are smuggled through advanced methods and exposure Weakness in safety, health and economicsBecause it affects the entire production chain. According to the President of the National Forum against Piracy and illegal (FNCP), Edson Visimona, the main advantage of illegal professionals is the price below the market, so he explains Anxiety about tax repairs Which applies more prices to convincing products.
In values, the country, in ICMS, raised $ 187 million with cigarette marketing, according to the Ministry of Finance in the state (SEFA). The Secretariat adds that the amounts collected with products represent 0.9 % of the state’s tax revenues. On the other hand, FNCP data shows that 20 % of all cigarettes sold in Para have an illegal origin.
Last year, the forum estimates that the illegal market moved an average of $ 101 million, including smuggled cigarettes and those that were illegally produced within the country by the extended debtor manufacturers. These are companies that repeat taxes frequently, so that they can sell cigarettes without stipulated in the legal market in Brazil, and compete with the smuggler.
In Para, Sefa states that the rate imposed on the price of cigarettes is 30 %. FNCP estimates that the tax evasion of strict tobacco companies are operating and inactive in Brazil reaches more than $ 22 billion.
Vissmona, President of FNCP, explains that the illegal market has an unfair competition with the legal product, due to high cigarette taxes in the country, although the applied tax varies in each state. “Not anything illegal (cigarette) pays a tax at all. With this, the legal product prepared in Brazil pays high taxes from 70 % to 90 %, according to ICM, is much more expensive compared to illegal.”
The actor emphasizes that high taxes help increase illegal activity in the sense of supply and demand. “The offer is wide, we have more than eight factories in Paraguay by manufacturing cigarettes, in addition to that secrecy inside Brazil, so there is a offer and the offer follows the demand, which is the price, and the consumer finds the cheapest cigarette, and will buy it,” explains. In this sense, it indicates concern about tax reform and the possibility of a selective tax.
“In order to influence this on our market and repeat public safety. Criminal organizations and militias will be celebrated if there is a greater increase in the tax burden in cities on cigarettes.
Smuggling roads
In addition to health damages, given the lack of supervision of illegal cigarette quality, there are also risks to public safety. These are directly related to the smuggled process used by the militias, with increasing detailed methods. “Before the Paraguay road is only directly to the border states, and therefore throughout Brazil. Now we have another road wandering in South America.” In this new path, the capital of Barra is seen as a gateway across the illegal market.
The new track adopted by smugglers is more bold. Cigarettes are produced in Paraguay and the country is left towards Bolivia, which was transferred to the Port of Ekikki, Chile, and then revolves around the Panama Canal to Surinam. From Surinam, illegal cigarettes enter Brazil through the sea and river roads, especially in the northern and northeastern regions.
“With this new road, we have identified the growth of the illegal market in the north and northeast, via Belém, which has become a center of products from Paraguay, and cigarettes from Paraguay, a new smuggling road,” says Vismona.
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The solution to combating organized crime growth, in particular, in this part of illegal cigarettes, according to FNCP President, is related to cooperation. “We have always provided this to our powers, the importance of expressing efforts, and determining the great measures that should be taken, based on the integration of operations, police, information and intelligence,” concludes.
