Federal tax revenue down 33 percent in May

Brazil's federal tax revenue down 33 percent in May

Brazil’s total federal tax revenue fell by 33 percent in May in comparison to last year’s figures. The amount of BRL 77.41 billion (USD 15.04 billion) is also the lowest collected by the Federal Revenue Service in the month of May since 2007.

The figures reflect the sharp economic downturn felt by Brazilians during the pandemic and the extension of income tax deadlines granted by the federal government to give more leeway to individuals and companies weathering the crisis. April had already registered a similar fall in tax revenue with a 29 percent decrease, translating into BRL 93 billion less in taxes that month.

As previously covered by The Brazilian Report, the Covid-19 pandemic might lead to a mass default of tax levies. Federal authorities are currently studying the possibility of allowing income taxes to be paid in installments during the pandemic, a measure that the Federal Revenue Service has opposed. So far in 2020, federal tax revenue has decreased by 12 percent in comparison to pre-pandemic figures.

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