The illegal market moves R$ 179.2 billion per year in Brazilian retail, according to data from CNC. Industry entities and specialists point out that the illegal chain is not sustained only by street vendors, but begins with companies that systematically fail to collect taxes.
To reach those who make tax evasion a business model, Complementary Law 225/2026 came into effect in January, creating the figure of the contumacious debtor. The rule is the main new instrument of a set that also includes asset recovery, stricter criminal penalties, and product tracking.
The numbers from the application of this legislation, however, are modest. The Federal Revenue identified 3,132 companies that may be classified under the new legislation.




