November worst result for federal revenue since 2008

Brazil's Federal revenue faced a sharp plunge in November. According to figures released today (Dec. 23) by the Federal Revenue Service, the total collected reached $24.08 billion. Apart from representing a 17.29% drop from November last year (inflation considered, as measured by the National Broad Consumer Price Index, or IPCA), that is the lowest performance for the month since 2008.

From January to November, revenues added up to $277.5 billion, 5.76% lower than the same period in 2014. The amount is the lowest for the 11 first months since 2010.

According to the Federal Revenue Service, apart from the economic crisis, the main reason behind the decline last month was the number of payments divided into installments in 2014 that did not repeat themselves this year. In November last year, collection totaled $2.05 billion in special installed payments, against $338.8 million in November 2015.

The decrease in the profit of companies, which reduced both the income tax among legal entities and the social contribution on net income, coupled with the tax breaks, also contributed to cutting down revenue, both in November and the January-November period, which saw a decline of $24.06 billion.

Translated by Fabrício Ferreira