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Montevideo, July 2nd 2022 - 21:20 UTC

 

 

Federal tax collection in Brazil 18.3% up in January

Wednesday, February 23rd 2022 - 20:07 UTC
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Revenues from Tax on Financial Operations went up 91.96% Revenues from Tax on Financial Operations went up 91.96%

Collection of federal taxes in Brazil has reached its peak since 1995, according to a report from the Economy Ministry released Wednesday, which showed revenues had reached R$ 235.3 billion in the month of January of 2022.

After adjusting figures according to the Broad Consumer Price Index (IPCA) -10.06%-, last month's data represented a 18.3% improvement against January of 2021.

Revenues Administered by the Federal Government, the amount collected in January 2022 was R$ 217.421 billion, representing a real increase (IPCA) of 14.66%.

According to Brazil's Central Bank (BCB), the increase stemmed from atypical payments of Corporate Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and by the deferral of the Individual Income Tax (IRPF) quotas originally due in 2021.

The IRPJ and CSLL showed a growth in collection, especially from companies that closed their balance sheets in December 2021, totaling a collection of R$ 84.1 billion, with a real growth of 32.41%.

Cofins and PIS/Pasep together represented R$ 36.4 billion, a real increase of 8.58%. The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are federal taxes based on the turnover of companies. The PIS is intended to finance the unemployment insurance system, and COFINS to fund Social Security. Next to Corporate Tax, COFINS is the main budget revenue of the Brazilian Federation.

This performance is explained by the real decrease of 2.7% in the volume of sales, according to the Monthly Survey of Commerce of the Brazilian Institute of Geography and Statistics (PMC-IBGE), and the real increase of 10.4% in the volume of services, according to the Monthly Services Survey (PMS-IBGE) between December 2020 and December 2021.

There was also a real increase of 6.61% in the collection of non-financial companies, especially in the fuel sector; real increase of 13.83% in the collection of imports; and a 32% decline in the volume of tax offsets.

The Tax on Financial Operations (IOF) collected R$ 4.6 billion, representing a real increase of 91.96%. This result is explained by the growth in the volume of credit operations contracted by natural and legal persons.

(Source: Agencia Brasil)

Categories: Economy, Brazil.

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