News

Federal revenues down 7.33%

28 de julho de 2016

Collection of taxes and contributions reached BRL 617 billion in the first half of this year and BRL 98 billion in June, the worst result for the month since 2010.

Brasília – Collection of federal taxes and contributions in Brazil stood at BRL 617.257 billion (USD 188.128 billion) in the first half of 2016, down 7.33% in real terms from H1 2015. “H1 2016 collection results were smaller than in H1 2015 due to a sharp drop in economic activity. At this time, employment levels, weakening consumption and declining industry production are being reflected in revenue collection numbers,” said Claudemir Malaquias, head of the Federal Revenue Service’s Center for Tax and Customs Studies.

In June, the federal government of Brazil collected BRL 98.129 billion (USD 29.907 billion) in taxes and contributions, down 7.14% from June 2015. The numbers were made public this Thursday (28) by the Federal Revenue. This was the poorest result for a June since 2010.

“A recovery in collection levels will come as employment levels recover, leading to improved family income and a rebound in consumption,” Malaquias said. He believes indicators allow the Federal Revenue to detect better signs than previously expected when it comes to revenue collection. “We had predicted a more negative result at the beginning of the year than the one we are seeing today,” he said.

*Translated by Gabriel Pomerancblum