From CRE Brazil
Each year, Brazil loses nearly R$2 billion in taxes due to contraband cigarettes. This estimate was announced last month by the industries after comparing information from market research and sales quantities. According to calculations, approximately 16% of the cigarette business in the country is illegal and the distribution of contraband products is growing by about 2% a year.
The amount that is not paid to the government is about the same; for example, the 2.1 billion used by the federal government last year in rebuilding cities hit by natural disasters