June 5, 2024
Reading time • 5 min
“With tax increases, the illegal market grows,” says FNCP president
Excessive taxation from the new Selective Tax, provided for in the tax reform regulations, could stimulate the market for illegal products. This was stated by Edson Vismona, executive president of the National Forum Against Piracy and Illegality (FNCP) at the opening of the CB Forum: Impact of Tax Reform on the Economy and Public Security.
“One aspect that can often be under the radar is the impact of tax reform on public security. The illegal market is hoping for a tax increase, because with a tax increase the legal product will become more expensive. This is the great driving force behind illegality. The legal product becomes more expensive and, as a result, the illegal one grows,” he said.
The event, organized by Correio Braziliense in partnership with the FNCP, brought together authorities and experts to debate the fight against piracy. “As a result of the tax reform, we can’t have an increase in taxes that will further burden legal products and encourage illegal ones,” said Vismona.
Giving an overview of the illegal market in the country, Vismona mentioned data showing that 40% of Rio de Janeiro’s cities have areas where the sale of legal cigarettes is prohibited. “It’s a criminal monopoly and an affront to the state.”
According to the president of the FNCP, the illegal market is strengthened by being favored by the non-payment of taxes. “We are very concerned about this. If there is a greater burden with tax reform, the illegal market will take advantage of this, crime and the militias are being financed by these practices,” he said.
