Federal tax collection down in May

The Brazilian government's tax revenue stood at $29.5 billion in May, reported the Federal Revenue Service today (Jun 25). Compared to 2014, the figure is down 4.03%. The collection was the lowest for May since 2010's $27.7 billion.

With the result for May, the year-to-date value totals $164.4 billion (down 2.95%), and reflects the 21.33% reduction in the month and the 7.44% drop in the cumulative revenue from the Income Tax for Legal Persons and the Social Contribution on Net Profit.

Another contributing factor was tax breaks, which amounted to $15.1 billion from January to May. Further influence was exerted by a negative 5.7% in industrial output, sales down 5.15%, and the 23.17% contraction in the dollar rate for imports. The country's payroll, however, saw a surge of 6.17%.

In order to tackle the global economic crisis and its ripples in Brazil and reinvigorate the country's economy, the economic staff is currently reversing some of the tax benefits granted over the past years.

Translated by Fabrício Ferreira