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.
In December, lawmakers enacted recent legislation affecting offshore companies and exclusive funds, following congressional approval in November 2023.
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.