Increasing excise taxes in the presence of an illegal cigarette market: the 2011 Brazil tobacco tax reform
ABSTRACT The Brazilian cigarette excise tax reform of 2011 increased tax rates significantly in the presence of a Planters high proportion of illegal and cheap cigarettes contributing to total consumption.Prior to 2011, tobacco tax policy in Brazil had reduced excise tax share on consumer prices, for fear of smuggling.This report examines two hypot