Federal tax revenue totaled R$73.02 billion in January, a record for the month, according to data just released by the Brazilian Tax Authority, including taxes, federal contributions and other government collections, such as royalties.
The January result represents a real drop in revenue (adjusted for inflation measured by the IPCA) of 1.88% compared with December 2009, but a significant 13.64% increase over January 2009, when results were affected by the international economic crisis.
Administered revenue (excluding taxes and contributions controlled by other entities) totaled R$69.041 billion in January 2010, down 2.23% in real terms compared with December 2009 and up 12.27% in year-on-year terms.
The general coordinator of studies, forecasts and analysis at the Brazilian Tax Authority, Raimundo Eloi de Carvalho said in a collective press statement that the institution expected the positive result last month to extend throughout the year. “As far as tax revenue is concerned the crisis is over”.
He added that y-o-y tax revenue increases have been “positive and significant” since October of 2009. “It is correct to say that tax collections in 2010 compared with 2009 have shown a positive trend”, without making any projections.
According to Carvalho, the reversal of economic indicators influenced the result, notably the drop in revenue last year associated with the drop in industrial production and increase in outstanding tax debts due to individuals and companies dealing with the international financial crisis. Carvalho does not believe that these factors will play an important role this year.