Federal Tax Revenue Totals R$137.7 Billion in July, Best Result Since 2011

RIO DE JANEIRO, BRAZIL – The collection of federal revenues totaled R$137.7 billion (US$34.4 billion) in July 2019, reported today, August 22nd, the Federal Treasury Secretariat of the Ministry of Economy. Real growth (discounting inflation) compared to the same month in 2018 reached 2.95 percent. It is the highest result for the month since July 2011 (R$141.8 billion).

According to Claudemir Malaquias, the head of the Treasury’s Center for Tax Studies and Customs, the month’s result was influenced by atypical events. The main reason was the increase in the collection of extraordinary revenues of approximately R$3.2 billion with Corporate Income Tax and Social Contribution on Net Profit. According to Malaquias, this occurred due to corporate reorganizations, in which taxes are levied on capital gains from the new organization of companies. According to the Treasury, the growth in the collection of judicial deposits also had an influence.

Over the seven months this year, revenue totaled R$895.330 billion, a real increase of 1.97 percent. The amount corrected for inflation totaled R$902.506 billion, the highest amount collected in the period since 2014, when it reached R$905.371 billion, corrected for inflation.

Revenue sources administered by the Federal Treasury (such as taxes and contributions) reached R$127.637 billion in July, with a real increase of 4.15 percent, and accrued R$854.285 billion in the seven months of the year, up 1.6 percent.

Revenues collected by other bodies (primarily oil royalties) fell in July. These revenues totaled R$10.097 billion last month, with a 10.18 percent contraction in relation to July 2018. From January to July, the total reached R$41.045 billion, with a real increase of 10.25 percent, compared to the same period last year.

According to Malaquias, the collection continues to grow faster than Brazil’s Gross Domestic Product, but is still below expenditure growth. The increase in revenue assists the government in meeting its fiscal targets.