Tax revenue at 20-year record until May

Tax revenue at 20-year record until May
Federal Revenue Service building. Photo: Marcelo Camargo/ABr

Brazil’s tax revenue in May reached BRL 142.1 billion (USD 28.77 billion), 70 percent higher than in May 2020 when adjusted for inflation. Revenue for the first five months of the year reached BRL 744.8 billion — 21-percent more than the same period last year.

According to the Federal Revenue Service, the results are the highest since 2000. “That is important because we’re on the brink of passing a tax reform and we can’t let the tax code smother Brazilian entrepreneurs,” said Economy Minister Paulo Guedes, upon announcing the results.

The positive performance is largely driven by the payment of around BRL 16 billion in income taxes and social contribution on net income (CSLL) between January and May. The Federal Revenue Service also points out the performance of foreign trade taxes, which saw growth of 70 percent when compared to 2020 figures.