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Brazil exempts taxes on ultra-processed food - P4H Network

Brazil exempts taxes on ultra-processed food

Brazil’s exemption of ultra-processed foods (UPFs) from a selective tax risks worsening non-communicable diseases. Evidence links UPFs to chronic illnesses, highlighting the need for stronger fiscal measures.

The Lancet reports that Brazil’s decision to exclude ultra-processed foods (UPFs) from a new selective tax is a concerning move for public health. While sugary drinks and preservatives will be taxed, UPFs remain affordable, risking increased consumption and associated health issues. UPFs, rich in sugars, saturated fats, and sodium, but low in nutrients, contribute to chronic non-communicable diseases (NCDs) like obesity, diabetes, and cardiovascular conditions. These diseases place a significant financial burden on Brazil’s health system, with projections suggesting $700 million in UPF-related costs by 2036.

Countries like Mexico and Chile demonstrate the effectiveness of taxing UPFs, showing reduced consumption and improved health outcomes. Brazil’s exemption risks deepening health disparities, perpetuating poor nutrition among vulnerable groups.

Reference
Bráulio Evangelista de Limaa, Mila Alves Matos Rodriguesa, Marília Santos Andradeb, Rodrigo Luiz Vancinic, Claudio Andre Barbosa de Lira, Brazil's tax exemption on ultra-processed foods: a public health setback, The Lancet, 30 Dec 2025