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Tax Spike in Brazil Weighing Heavily on Cosmetics Market

July 20, 2015 | Contact Author | By: Kristen Wegrzyn
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Keywords: cosmetics | retail | Brazil | South America | inflation | taxes | taxing | hygiene | beauty

Abstract: Cosmetic retail prices will be lifted as much as 12 percentage points above inflation this month due to higher taxes in Brazil.

Due to a new policy in May that levied the industrial IPI tax—Imposto sobre Produtos Industrializados, which is Portuguese for Tax on Industrialized Products—on cosmetics wholesalers and producers, the cost of cosmetics is expected to increase 20% or more, according to a Reuters report. The tax will likely stoke inflation and weigh heavily on the world's No. 3 beauty market.

This content is adapted from an article in GCI Magazine. The original version can be found here.