Tobacco and Weapons Industries Receive Fiscal Benefits of $36 Million in Brazil

The amount refers to fiscal waivers in 2021, disclosed on the Transparency Portal

Brasília

Companies in the tobacco and weapons sectors received fiscal benefits of over R$180 million ($ 36 million) in 2021.

The information pertains to amounts that were not collected in federal taxes and incentives related to government programs. The data were made available for consultation on the Transparency Portal in January.

Nine companies in the arms industry received benefits totaling R$133.8 million ($ 27 million) in the same year. The largest waiver, amounting to R$95.4 million ($19 million) , was granted to Companhia Brasileira de Cartuchos. Following that, Taurus benefited by R$30.3 million ($ 6 million).

Among the companies linked to cigarette production, the largest waivers were for Tobacco House and Philip Morris, each receiving about R$9 million in benefits. In total, the sector reduced R$47.4 million ($9.4 million) in taxes.

Congress considered imposing a Selective Tax on weapons in the tax reform approved in 2023. In the final stages, an amendment presented by the party of former President Jair Bolsonaro overturned the plan.

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