Brazil’s federal tax revenue grows 17.96% for record June
2022.07.21 18:50
FILE PHOTO: Workers clean the windows of an office building in downton of Rio de Janeiro, Brazil September 14, 2018. REUTERS/Sergio Moraes
BRASILIA (Reuters) -Brazil’s federal tax revenue in June rose 17.96% year-on-year to a record level, official figures showed on Thursday, boosted by increases in corporate income taxes and oil royalties.
According to the revenue service, federal tax revenue was 181.04 billion reais ($33.14 billion), the highest June figure since the data series began in 1995.
It follows on from records each month since the start of the year.
The government said corporate income tax had risen by 37.47% following increased contributions from the fuel and retail sectors.
Monetary tightening as the central bank seeks to curb inflation has raised the yields of fixed-income investments and, as a result, taxes on capital income jumped by 97.42% versus June 2021, the revenue service said.
Higher oil royalties, in line with increases on international oil markets, also drove the record gain.
In the first half, tax revenues grew 11% in real terms over the same period last year.
Economy Minister Paulo Guedes has said that the economy’s strength has guided the record numbers, giving the government confidence to cut taxes and increase income transfers to the poorest without compromising the fiscal result.
The Brazilian Congress earlier this month approved a government-backed spending package ahead of elections in October, seen as fundamental to improving the popularity of President Jair Bolsonaro, who seeks re-election but is trailing in opinion polls.
Some analysts say non-recurring factors have boosted the tax revenues, such as double-digit inflation and higher commodities prices amid the war in Ukraine.
($1 = 5.4623 reais)
