Brazil: Lula’s government raises US$115.1 billion in taxes in the 1st quarter, the highest result for the period

By Gianlucca Gattai

The collection of federal taxes and contributions in Brazil reached R$581,795 billion (US$115.1 billion) in the 1st quarter of 2023.

The IRS released the data on the collection on Tuesday morning (25).

According to the IRS, the amount corresponds to the best collection performance for the period since 1994, which marks the beginning of the historical series.

In the year to date, according to the IRS, the real increase (above inflation) of 0.72% can be explained mainly by the collections of the adjustment of IRPJ and CSLL and the tax breaks granted in the IPI and PIS / COFINS.

In March, total federal revenue collections reached R$171.056 billion, registering a real decrease (below inflation) of 0.42% compared to the same month last year, the period that continues to show the highest collections for the month.

Between January and March, the Social Security Revenue Service totaled R$142.132 billion, with an actual gain of 6.99%.

According to the Revenue Service, the performance is explained by the real growth of 12.07% in the workers’ salary mass.

In addition, there was growth in tax offsets with social security revenue debts due to Law 13,670/18.

With information from Gazeta Brasil