RIO DE JANEIRO, BRAZIL – After figures adjusted to the Extended National Consumer Price Index (IPCA), at 10.06%, last month’s data represented a 18.3% improvement over January 2021.
Revenues administered by the Federal Government reached R$217.421 (US$43.3) billion in January 2022, representing a real increase of 14.66%.
According to Brazil’s Central Bank, the increase was the result of atypical payments of Corporate Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and of the deferral of the Individual Income Tax (IRPF) quotas originally due in 2021.
The IRPJ and CSLL posted a growth in collection, notably from companies that closed their financial reports in December 2021, totaling a collection of R$84.1 billion, with real growth of 32.41%.
Cofins and PIS/Pasep together represented R$36.4 billion, a real increase of 8.58%. The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are federal taxes based on companies’ turnover. The PIS is intended to finance the unemployment insurance system, and COFINS to fund Social Security. Next to Corporate Tax, COFINS is Brazil’s main budget revenue.
This performance is explained by the real decrease of 2.7% in sales volume, according to the Brazilian Institute of Geography and Statistics’ (IBGE) Monthly Survey of Commerce, and the real increase of 10.4% in the volume of services, according to the Monthly Services Survey between December 2020 and December 2021.
There was also a real increase of 6.61% in the collection of non-financial companies, notably in the fuel sector; a real increase of 13.83% in the collection of imports; and a 32% decline in the volume of tax offsets.
The Tax on Financial Operations (IOF) collected R$4.6 billion, a real increase of 91.96%. This result is explained by the growth in the volume of credit operations contracted by natural and legal persons.
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