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Tax incentives account for 3.8% of Brazil’s GDP in 2021

By Richard Mann · September 13, 2022 · 1 min read

The Brazilian government granted R$329.44 billion (about US$64.365 billion) in subsidies and tax exemptions last year, a figure equivalent to 3.8 percent of gross domestic product (GDP), according to an Economy Ministry report released today, Monday.

The nominal decrease in incentives in 2021 is R$8.81 billion (about US$1.721 billion) compared to the amount recorded in 2020.

The figures correspond to the tax incentives or financial aid granted by the authorities to specific sectors of the economy.

Tax incentives account for 3.8% of Brazil’s GDP in 2021. PHOTO: 200 reais note are seen after Brazil's Central Bank issues the new note in Brasilia, Brazil September 2, 2020. REUTERS/Adriano Machado

The tax incentives that increased the most compared to 2020 were for the Manaus Free Trade Zone (Northwest), free trade zones and the automotive sector, and agriculture and agribusiness.

Tax subsidies totaled R$276.8 billion (about US$54.08 billion), equivalent to 3.19 percent of Brazil’s GDP.

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