Brazil Federal tax revenue sets new record in June

The tax collectors in Brazil raked in R$61,488,000,000 in June. When the amount is corrected by the Broad Consumer Price Index (“IPCA”), which is the government’s inflation yardstick, that is an increase of 8.54% over tax revenue in June 2009 (however, the comparison of the two months is unequal given that a year ago Brazil was feeling the effects of the Great Recession along with the rest of the world).

Even so, a comparison of the first half of this year and the same period in 2009 shows that tax revenue is up 12.48%.
The Brazilian IRS (“Receita Federal”) says the numbers demonstrate a recovery of the country’s principal macroeconomic indicators, such as industrial output, up 14.08%; general volume of sales, up 9.50%; and salary mass, up 14.49%. And, the strong showing (June tax revenue) it must be pointed out, was actually a reflection of economic performance in May. On the other hand, some tax specialists point out that total 2010 tax revenue may increase by over 12%, compared to 2009. And the total burden of federal, state and municipal taxes in Brazil are headed for a record of over 37.5% of GDP.