Brazil’s tax bureau strengthens supervision of e-cigarette sales, 22 companies suspended operations

According to G1.Globo on December 16, the Brazilian Federal Taxation Bureau has strengthened its supervision of e-cigarette sales. Since October, 22 corporate tax numbers (CNPJ) in Sao Paulo have been suspended. The authorities said that in 2025, they plan to launch a wider action against unregistered small vendors, including product seizures and possible criminal prosecutions.

In 2024, the amount of e-cigarette seizures hit a new high of 240 million reais (39 million U.S. dollars), nearly four times the 63 million (10.25 million U.S. dollars) in 2023.

Raphael Eugênio de Souza, the general coordinator of the Federal Taxation Bureau’s fight against smuggling and tax evasion, said that the penalties on companies are aimed at deterring them from violating the law again. The suspension of corporate tax numbers will prevent companies from operating normally, including being unable to operate bank accounts, issue invoices, and pay suppliers.

In addition, the tax bureau also warned that there is a link between the illegal e-cigarette market and the funding of organized crime. Small shops that buy smuggled goods are actually supporting criminal networks, which increase their profits by diversifying their illegal activities.