The IPI industrial products tax for cigarettes will be increased to 9 per cent from 6 per cent in stages over the next four years, the Wall Street Journal reported.
Hiking the IPI tax on cigarettes will compensate for revenue lost when the government cut tax rates for some industrial sectors and help fund tax incentives for local industries, the newspaper reported on its website. The government reportedly said it projects hiking the IPI on cigarettes will more than double collections to BRL 7.7 billion reals (EUR 3.3 billion) by the end of 2015 from the current BRL 3.6 billion. (pi)
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