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Brazil’s federal collection totals $26.11 bi in June

Brazil’s federal government collected $26.11 billion in June, as per figures disclosed today (Jul. 21) by the country’s Federal Revenue Service. Compared to June last year, the number is up 46.77 in values corrected according to the National Broad Consumer Price Index (IPCA), which gauges the country’s official inflation.

For the first six months of 2021, federal collection adds up to $167.94 billion—up 24.49 percent, a record for this time span.

Brazilian Economy Minister Paulo Guedes commented on the outcome, saying that the significant increases in tax collection show solid economic momentum. “All signs are coming from the Revenue, exports, imports, the pace of the payment of taxes in all varieties, all classic symptoms of a vigorous resumption of economic growth,” he said.

Guedes further pointed out that, of the 86 sectors, a mere six still show collection below pre-pandemic levels. “These are events, travel agencies, pubs and restaurants, for instance, because there are still major vectors of social distancing, precautions, many cities and states under a regime of exceptional mobility,” he explained.

Result

According to the Federal Revenue Service, figures may be explained by non-recurrent drivers (not likely to be repeated in coming years), like the extraordinary collection of $3.8 billion in the Income Tax – Legal Person (IRPJ) and in the Social Contribution on Net Profit (CSLL), January–June 2021.

In the same period last year, the extraordinary amounts collected totaled $533 million. In the month, the growth was reported at 76.88 percent above the inflation, with the atypical payment of $761 million by companies from a range of economic sectors.

In the last months, these untimely amounts have boosted collection due to companies that registered higher-than-estimated profits and had to pay the difference.

Reference