Better Control Brings 14% More Tax Money to Brazil Treasury

Brazzil Magazine covers

Brazil currency, the real From January until May this year, the Brazilian federal government collected, in taxes and social security contributions, 234 billion reais (US$ 122.7 billion), a value 14% higher than recorded in the same period last year, which was slightly above 204 billion reais (US$ 107 billion).

In May alone, the increase was 45 billion reais  (US$ 23.6 billion), a record high for the month, and nearly 13% more than recorded in May 2006, when the revenue was slightly over 40 billion reais (US$ 20.9 billion).

According to the joint secretary at the Brazilian Federal Revenue and Customs Administration, Carlos Alberto Barreto, "more intensive inspection in the fields of compensation, indemnification, and credit recovery, as well as greater customs control over imports," justify the result.

The value collected from import tariffs, which rose by 18%, was due to the depreciation of the dollar against the Brazilian real, Barreto explained, adding that this also generated an increase in the inflow of foreign products to the country.

Other contributing factors for the accumulated collection performance were the sectors of metallurgy (plus 22%), manufacturing of chemical products (13%), and of trucks and buses (45%). The list also includes the 34% increase in collection of the Personal Income Tax (IRPF) in 34%.

Compared with May 2006, according to the joint secretary, the main contributing factor to the result this year was the growth in legal and administrative deposits, totaling 1.5 billion reais (US$ 787 million), against 422 million reais (US$ 221.4 million) recorded last year.

But in the comparison with April this year, there was an 11% decrease in collection, which the report explains as "a consequence of seasonal effects such as the payment of the first quota or single quota of the Personal Income Tax."

ABr

Tags:

You May Also Like

Brazzil Magazine covers

Unemployment Falls in Brazil. Shrinking of Economically Active Population Helps.

The encouraging results of the National Employment Survey, announced by the Brazilian Institute of ...

Brazzil Magazine covers

Brazil Unhappy with Argentina’s Policy on External Tariffs

According to Brazil, the decision by Argentina to maintain a list of exclusions from ...

Brazzil Magazine covers

Suppose Lula Is Impeached. It Won’t Be a Nice Picture in Brazil.

What everybody in Brazil is talking about, this week, is not  the explanation given ...

Brazzil Magazine covers

Syria Shows Brazil Has a Long Way to Go to Become a Political Power

On July 20, 2012, Brazil’s Foreign Minister, Antonio Patriota, announced the withdrawal of all ...

Brazzil Magazine covers

Brazil Reinvents Politics as the Art of Getting Dirty and Still Win

A month before the presidential and legislative elections of October 2006, politics in Brazil ...

Brazzil Magazine covers

Brazil Looks for Foot and Mouth Disease Source. Cattle Should Be All Vaccinated.

The Brazilian government received several notifications of temporary cancellations of beef purchases, following reports ...