Federal revenue in Brazil grows 4.6% in July, setting monthly record

Driven by economic growth and an increase in the Financial Transactions Tax (IOF), federal revenue reached BRL 254.2 billion in July, the Brazilian Federal Revenue Service announced this Thursday (Aug. 21). This is the highest figure recorded for the month since the start of the historical series in 1995 and represents real growth (above inflation) of 4.57 percent compared to July 2024.

From January to July, revenue totaled BRL 1.679 trillion, an increase of 4.41 percent compared to the same period last year in inflation-adjusted terms. This is also the highest figure for the period since the start of the historical series.

One of the main factors behind July’s record was the increase in the IOF. In that month, tax revenue reached BRL 6.5 billion, up BRL 756 million, or 13.05 percent above inflation. Year-to-date, the IOF generated BRL 43.5 billion, an increase of 9.42 percent above inflation.

Despite the increase, the Federal Revenue Service emphasized that the impact in July was minimal, as the Supreme Federal Court only reinstated the decree increasing the IOF in mid-July.

According to Marcelo Gomide, Coordinator of Forecasting and Analysis at the Tax Authority, the full effect will be felt starting in August.