Brazil's federal tax revenue hits record high in March

2 minutes

BRASILIA, April 20- Brazil's Federal tax revenue hit a new record for the month of March, the revenue service said on Tuesday, another bumper month that suggests the economy may be better at managing the deadly second wave of the COVID- 19 Pandemic than many predicted.

Strong growth in corporate taxes and firms' social contributions to net profits accounted for much of the rise, although figures for March last year were already blighted by the onset of the pandemic.

The tax charge for the month ended on 137.9 billion reais, up 18.5% in median terms from a year ago, was a record for that month since the data series began in 1994 and more than the 2014 126.2 billion reais figure in a Reuters poll of economists.

It took the total tax take for the first three months of 2021 to 445.9 billion, up in real terms from the first quarter of last year and the highest since 1994, said the revenue service.

In March, the company social contributions on profits and the corporate income tax totaled 24.6 billion reais, the revenue service said, up 44.8% in real terms from the same month last year.

In March, payments into the social contribution fund known as PIS Pasep and the Cofins Social Security levy rose to 29.5 billion reais in real terms, the revenue service said.

For the first quarter, corporate taxes and company social contributions on profits rose 19.8% in real terms to 107.5 billion reais, and payments to PIS Pasep and Cofins rose 7% to 87.8 billion reais, said the Revenue Service.

Brazil's public finances are under enormous pressure, with the government facing a deep deficit and another year of record debt as it is forced to keep spending in order to reduce the impact of the pandemic.

  • Comments
Loading comments...