Brazil's federal tax revenue rises 1.4% to best November in 7 years

  • 12/21/2021
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BRASILIA, Dec 21 (Reuters) - Brazil"s federal tax revenue in November totaled 157.3 billion reais ($27.35 billion), a 1.4% rise in real terms over the same month last year and the highest figure for November since 2014, the revenue service said on Tuesday. Double-digit inflation in Brazil has helped tax collections, but even figures that do not take it into account showed significant increases after the COVID-19 pandemic slashed tax revenues in 2020. The government argues that economic growth is the main factor behind the numbers, but gains have slowed amid increasing signs of an economic slowdown. The monthly performance in November was the weakest of the year, second only to January, when there was a real drop of 1.5% in tax collection. Still, tax revenue in the first 11 months of the year totaled 1.7 trillion reais, up 18.1% over the same period last year, a record since the data series began in 1995. The performance has helped to improve the country"s primary deficit, and Economy Minister Paulo Guedes has already stated he expects a deficit equivalent to 1% of Gross Domestic Product in 2021, compared to a 10% deficit last year. ($1 = 5.7520 reais)

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