December 18, 2024 (New York, NY) – Vital Strategies celebrates a significant milestone in public health as Brazil’s National Congress has approved a transformative tax on tobacco, soft drinks, and alcohol. This landmark decision to address these three commercial drivers of ill-health, underscores the country’s commitment to regulating harmful products, improving health outcomes, and advancing a healthier future.
The newly approved legislation includes annual tax adjustments for tobacco, soft drinks and alcohol in line with inflation. Additionally, it establishes an innovative basic food basket of healthy, sustainable products exempt from taxation. The tax reform also grants a 60% reduction in tax rates for horticultural and minimally processed products, nuts, oils, flours, and items from Brazil’s rich socio-biodiversity. These measures will help ensure better access to nutritious food while discouraging consumption of unhealthy commodities.
“This is a landmark moment for Brazil and a historic victory for global public health,” said Pedro de Paulo, Regional Country Director for Vital Strategies, Brazil. “By implementing a tax on these products, Brazil is not only saving lives by curbing the consumption of harmful products but also championing equitable access to healthier, more sustainable alternatives. We commend Brazil’s National Congress for their leadership in this critical effort.”
A Historic Breakthrough for Public Health
The reform is a decisive step toward reducing the burden of noncommunicable diseases (NCDs), including cardiovascular disease, cancer, and Type II diabetes, linked to tobacco use, soft drink and alcohol consumption. By adopting a fiscal strategy rooted in health promotion, Brazil joins a growing list of nations using taxation to improve public health and provide additional financial resources for the country
Despite this victory, some provisions favoring the food and alcohol industries raise concerns, such as the inclusion of infant formula in the basic food basket and reduced tax rates for small alcohol producers. These elements will require close monitoring to minimize potential public health risks.
The specific tax rates for tobacco, alcohol, and soft drinks will be determined in 2025. To fully realize the public health benefits of this new tax structure, the levels of tax must be sufficient to reduce consumption. Vital Strategies, Brazil, will collaborate closely with partners to advocate for tax rates that prioritize public health. Setting these rates at levels that significantly reduce consumption of harmful products will protect communities from preventable diseases.
About Vital Strategies
Vital Strategies is a global health organization that believes all people should be protected by strong and equitable health policies and systems. We partner with governments, communities and organizations around the world to reimagine public health so that health is supported in all the places we live, work and play. The result is millions of people living longer, healthier lives around the world.
To find out more, please visit www.vitalstrategies.org or follow us on LinkedIn.
Media Contacts
Luíza Borges: +55 11 98198-5004 lborges@vitalstrategies.org (Brazil)
Christina Honeysett; +1-917-720-4775 choneysett@vitalstrategies.org (New York)