Showing Mild Growth, Tax Revenue for September is Highest in Five Years

RIO DE JANEIRO, BRAZIL – The result was virtually stable compared to the same month last year, with a growth of 0.06 percent (excluding inflation).  Despite the slight increase, this is the best result for the month since 2014, when it totaled R$118.829 billion (US$29.7 billion).

According to the head of the Center for Tax Studies and Customs Revenue, Claudemir Malaquias, collection stability in September is isolated. “It can only be said that it is slowing down when there are repeated moves in the same direction,” said Malaquias.

In September, the Treasury highlighted collections with withholding tax on employment income. In September 2019, the collection of this tax was R$9.817 billion, with real growth of 7.89 percent compared to the same period the previous year.

“This result reflects an increase in the item Profit Sharing or Results and income from salaried work and retirement in the public and private sectors,” says the body.

The Tax on Financial Operations had a collection of R$3.452 billion, representing real growth of 8.44 percent, compared to the same period the previous year. According to the Treasury, the result “mainly reflects the good performance in credit granting.”

Another noteworthy feature pointed out by the Treasury was the Import Tax/IPI-Tax Linked to Imports. The collection for both taxes in September 2019 totaled R$5.551 billion, with real growth of 3.85 percent, compared to the same period in 2018.

According to the Treasury, this increase is the result of the “11.72 percent growth in the dollar value of imports, coupled with factors related to the exchange rate and effective average rates,” states the Treasury.

Accumulated result

In the nine months of the year, collection totaled R$1.129 trillion, with a real increase of 2.15 percent. The figure corrected for inflation totaled R$1.136 trillion, the highest amount collected in the period since 2014, when it totaled R$1.149 trillion, in figures corrected for inflation.

Revenues managed by the Federal Treasury (such as taxes and contributions) reached R$111.523 billion in September, with a real increase of 0.2 percent, and accumulated R$1.083 trillion in the nine months of the year, a 1.91 percent increase.

Revenues managed by other bodies (mainly oil royalties) recorded a real drop of 5.92 percent, with a volume of R$2.411 in September. From January to September, the total reached R$45.875 billion, with a real increase of 8.09 percent, compared to the same period last year.

Source: Agência Brasil