Federal Tax collection in Brazil falls 33% compared to the first month of the year

In February, tax collection was R$ 92.358 billion, decreasing from the R$ 137.4 billion collected in January this year. The result was close to economists’ forecasts of R$ 94.4 billion. Compared to February last year, the number represents a real increase of 0.36%, In the first two months of the year, federal revenues totalled R$ 229.750 billion, an increase of 0.62% compared to the same period of last year.

The increase in revenues was due mainly to royalties, which rose by 32.49% in February and 53.3% in the first two months of the year. Oil royalties jumped in the first two months of the year by 71.61% compared to the same period of 2016.

Claudemir Malaquias, tax auditor and the Head of the Center for Tax and Customs Studies, believes the results show stabilisation in the tax collection, which remains under pressure due to the current recession. “Compared with the previous year’s performance,” says Malaquias, “the amount collected had a real increase. The upward trajectory from the end of last year is continuing, which is important, especially as macroeconomic indicators are signalling the start of a recovery.”

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