Brazil’s June Federal Tax Revenues Hit R$119.9 Billion, Best Result Since 2014

RIO DE JANEIRO, BRAZIL – The collection of federal revenues totaled R$119.946 billion (US$29.987 billion) in June 2019, reported on Tuesday, July 23rd, by the Federal Treasury Secretariat of the Ministry of Economy. Real growth (discounting inflation) compared to the same month in 2018 reached 4.68 percent. This is the highest result for the month since June 2014 (R$120.384 billion).

In the first half of the year, total collections reached R$757.595 billion, with a real increase of 1.8 percent. The amount corrected for inflation was R$763.321 billion, the highest amount collected in the period since 2014, when it reached R$773.496 billion, in amounts adjusted for inflation.

Revenues obtained by the Federal Treasury (all federal taxes and charges) reached R$116.729 billion in June, with a real increase of 4.43 percent, and accrued R$726.647 billion in the six months of the year, up 1.17 percent.

Revenues obtained from other entities (mainly oil royalties) totaled R$ 3.217 billion last month and R$30.948 billion in the first half, with a growth of 14.3 percent and 19 percent, respectively, over the same periods in 2018.

Impact on revenue collection

Claudemir Malaquias, head of the Center for Tax and Customs Studies of the Federal Treasury, said that the increase in revenue in June compared to the same month in 2018 was influenced by the truckers’ strike last year.

According to the Treasury, “the stoppage negatively impacted the base of some taxes, notably taxes levied on the production and sale of goods and services depressing the collection base of 2018.”

Malaquias recalled that in June of last year, there was “blockade of the output of all industries,” which led to lower collection. “In June 2018, the effects of the truckers’ strike were felt. The basis of comparison was very low,” he said.

The cumulative result for the year was impacted by the increased collection of Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL). These taxes had real growth of 12.27 percent in collection. “This result is due to the improvement in the companies’ results [last year, with collection this year], particularly non-financial companies, and the atypical revenues in the month of February 2019, in the amount of approximately R$4.5 billion,” says the Treasury in its report.