Lula reinstates taxes on firearms

President Luiz Inácio Lula da Silva on Tuesday signed a decree reversing tax cuts to firearms enacted during the Jair Bolsonaro administration.

The decree reinstates a 55 percent rate of the IPI (tax on manufactured goods) over most firearms, such as revolvers, pistols, and shotguns.

Back in April 2022, former far-right President Jair Bolsonaro lowered the IPI on most guns to 33.75 percent.

The IPI is a regulatory tax and thus can be adjusted by the president without congressional approval.

In a statement, the Lula administration said it expects an additional revenue of BRL 342 million (USD 68 million) in 2024 with the tax hike on guns. “This measure is in line with a conceptual perspective of disarming the civilian population, re-registering weapons in circulation, and fighting crime,” the statement says.

The Lula administration has worked extensively to reverse the pro-gun agenda of his predecessor. 

Brazil’s 2003 Disarmament Statute, enacted during Lula’s first spell as president, defines that citizens need to prove an “effective necessity” in order to purchase a gun. A decree signed by Jair Bolsonaro in early 2019 effectively waived this requirement by presuming that any declaration of “necessity” is true. Lula revoked this decree on January 1, his first day in office.

Several police investigations have shown that the Bolsonaro administration’s decrees and lax policies made it much easier for Brazil’s organized crime gangs to obtain guns through legal channels.

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