Even after rising to R$7.50, the country remains among the cheapest in the region; government raises taxes to contain consumption
Brazil maintains the 3rd lowest cigarette price in South America, even after the federal government raised the minimum value of a pack from R$6.50 to R$7.50 in 2026. The measure was defined by and is part of the tobacco control policy, with price increases and taxation to reduce consumption.
Pricing policy is considered central in the fight against smoking. Data National Cancer Institute indicate that the increase in taxes and minimum prices was decisive in reducing the number of smokers in recent decades. Since the 1990s, the proportion of consumers has fallen from more than 30% of the population to around 9% in 2015.
According to the WHO (World Health Organization), the average price of a pack sold in Brazil is US$1.32. It is only more expensive than in Paraguay (US$0.46) and Bolivia (US$1.09). The highest value is in Ecuador, US$6.00.
In recent years, however, . The minimum price remained at R$5 between 2017 and 2023, rose to R$6.50 in 2024 and has now been adjusted to R$7.50. According to the government, the update also seeks to reinforce revenue and offset costs related to energy policy, including subsidies for aviation kerosene and biodiesel.
The increase in cigarette tax is part of this package. Higher taxation aims to make the product more expensive and discourage consumption, especially among young people.
Data from the Ministry of Health show that smoking remains a relevant problem in the country. There are around 177,000 deaths per year associated with the use of tobacco products. Furthermore, the cost to the public health system is high. Estimates indicate annual spending of approximately R$98 billion on smoking-related diseases, while tax collection covers only a fraction of this amount.
The total economic impact, including lost productivity, amounts to more than R$150 billion per year, according to . Smoking is linked to dozens of diseases, especially cancer, cardiovascular diseases and respiratory problems.
Health authorities defend the continuation of the policy of real price increases as the main instrument to contain consumption. The strategy should be reinforced with the tax reform, which foresees the creation of a selective tax on products considered harmful to health, such as cigarettes.
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