Contraband – now 500,000 cases from Paraguay

Recent sources confirmed an estimated 500,000 master cases every month arriving in Brazil from Paraguay.

This increased from 400,000 and is more than likely caused by the recent closure by Receita Federal of several Brazilian cigarette producers.

Ironically, the closure has not benefitted the local suppliers but has migrated rapidly to Paraguay.

While Brazil insists on a disproportionately high tax burden for cigarettes in comparison to its neighbours this is likely to continue.

The Brazil market is estimated to be around 150 billion cigarettes 60 billion of which now come from Paraguay.

That’s an estimated 7 billion Reais in lost tax revenue.

2 comments ↓

#1 jurandy on 09.12.08 at 2:34 PM

In Puerto Iguazu the week of September 15 there is an intellection property protection conference.

There are many counterfeit articles available in nearby Paraguay, including cigarette.

In the cigarette business large multinationals work hard to mix together counterfeit and contraband as equally bad.

The contraband trade is created by a different dynamic – tax. Ask any Brasileiro tax payer.

#2 Tobocatman on 10.02.08 at 1:48 AM

TAXATION = CONTRABAND
PRETTY SIMPLE!

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