Brazil’s January Federal Revenue Sets New Record at $56.13B

Brazil’s federal revenue soared to a historic high of R$ 280.64 billion ($56.13 billion) in January, surpassing previous records since 1995.

This marks a 6.67% real increase from the same period last year, the Federal Revenue Service reported on February 22, 2024.

Tax authority collections contributed R$ 262.9 billion ($52.58 billion) to this total, showing a 7.07% rise from January 2023.

Additional sources added Rs 17.76 billion ($3.55 billion), a slight increase of 1.08% from last year.

A significant portion, R$6.1 billion ($1.22 billion), came from one-time effects or legislative changes, including:

• Unusual Corporate Income Tax and Social Contribution on Net Profit, yielding R$ 4 billion ($0.8 billion);
• Income tax is withheld on capital gains, generating R$ 4.1 billion ($0.82 billion);
• Reduced PIS and COFIN rates on fuels, causing a R$ 2 billion ($0.4 billion) shortfall.

The revenue figure for January outstripped economists’ expectations, which had predicted R$277 billion ($55.4 billion).

Federal Revenue analysis credits favorable macroeconomic indicators, showing Brazil’s robust economic activity and effective tax policy adjustments.

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