Part of the bakeries of SP announces that will no longer sell cigarettes because of jobs and taxes

About 400 of bakeries of greater Sao Paulo decided on Monday (1) stop selling cigarettes. The decision has two reasons: the number of rounds that kind of trade with focus on cigarette packages and the low profit margin on the sale of the product. Approximately 6000 bakeries are registered in the metropolitan region of São Paulo. The Village bakery Carmela, in Guarulhos, has already been robbed 18 times, averaging almost a robbery a year since your inauguration, for 20 years. At all times, the criminals had a single focus: packs of cigarettes. "The robbers have come armed requiring us take the counter cigarette boxes and delivered to them," says the owner Herminio Alonso Bernardo. The other bakery of Hermínio, which is also located in Guarulhos, was robbed four times in the last five years. Taxes in accordance with the Sampapão, a group that integrates the bakery Industries ' Union of São Paulo and the Institute of development of bakery and Confectionery of São Paulo, on average, gross margin of profit for marketing of cigarettes of bakeries is 6.9%, but this percentage discounts are many. According to the Union, 95% of the bakeries in the State are under the single National taxation system and pay taxes on billing between 4.5% and 7.8%, depending on the company's revenue. Marketers also claim that rates are discounted by credit card operators. The value of a bunch of cigarette costs on average between R $6 and R $10, depending on the brand. The card companies charge up to 3% in credit operations and 1.5% in debt of each sale. That decision has gained volume on accessions and the bakers say they won't back if there is no negotiation on the part of the tobacco companies. "They [manufacturers] increase mark-up. The bakeries are having prejudice with the sale of the product, "explains Antero. Marketers want a margin of 12% profit with companies that produce cigarettes. The cigarette is among the products with more tax in the country. The current tax burden is around 80%. The bakery Sines, at Interlagos, the cigarette shelves are empty since the morning of last Saturday (30). On the poster, a message warns: "we're not selling more cigarettes because we disagree with the policy of our supplier". The message has won support from customers. "Every 10 customers, seven praised the initiative. Surprised me. Please many customers, "says Flavio Leite, owner of the bakery in the South. Between 2017 and 2018, the trader suffered a loss of almost R $10000 in a single round. Study Government reduce taxes last week, the federal Government decided to create a working group to assess the reduction of taxation of cigarettes. According to the Ordinance establishing the group, signed by the Minister of Justice and Public Security, Live, the reduction of taxation can "reduce the consumption of low-quality foreign cigarettes, smuggling and the resulting health risks".