In early 2024, Brazil set a new record by gathering 467.158 billion reais (about $93.860 billion) in taxes.
This is an 8.82% rise over the prior year’s same span. Such an increase establishes a fresh high, says Receita Federal, the tax authority.
This success points to the sturdy economy of Latin America’s biggest country. Under President Luiz Inácio Lula da Silva since 2023, the economy grew 2.9%, more than anticipated.
In February 2024 alone, tax income hit 186.522 billion reais (nearly $37.466 billion), the highest for February since tracking started in 1995.
Adjusted for inflation, it’s a 12.27% boost from February 2023.
Claudemir Rodrigues Malaquias, who leads the Tax and Customs Studies Center at Receita Federal, links this to strong economic actions and smart policy choices.
“Our combined steps for better tax collection worked well in February,” he notes.
Such tax results are key to Brazil’s goal of zero primary fiscal deficit in 2024. The country’s laws allow a slight deficit, up to 0.25% of GDP.
To continue on this path, the government plans to limit some budget areas to reduce unnecessary spending. The Ministry of Planning and Budget will soon share these plans.
Background
Brazil faces a critical challenge with its surging national debt, making the increase in tax revenue more than just good news; it’s essential for the country’s financial stability in 2024.
The rise in debt levels has put Brazil at a crossroads, where efficient tax collection becomes not just important but crucial for economic survival.
This situation has prompted the government to seek innovative ways to enhance its tax intake, recognizing that maintaining economic stability would be an uphill battle without it.