06/25/2024 – 13:01
Federal government revenue had a real increase of 10.46% in May compared to the same month of the previous year, totaling 202.979 billion reais, the highest collection for the month since the beginning of the series, in 1995, the Federal Revenue reported this Tuesday- fair, 25th.
The figure came slightly above the 199.726 billion reais estimated by economists in a Reuters survey.
From January to May, revenue grew 8.72% above inflation, to 1.090 trillion reais, also the highest in the series.
According to Revenue, the positive performance of the month, which secured the sixth consecutive monthly record for revenue, was influenced by the “behavior of macroeconomic variables”, the return of PIS/Cofins taxation on fuels, the taxation of exclusive funds and the update of goods and rights abroad.
On the other hand, for the first time the tax authorities mentioned a substantial loss of revenue with the declaration of a public calamity in Rio Grande do Sul, which generated the deferral of 4.4 billion reais in federal taxes that would have been collected last month.
In a press conference to present the data, the head of the Center for Tax and Customs Studies at the Federal Revenue, Claudemir Malaquias, stated that part of Rio Grande do Sul’s revenue can be recovered with the end of the deferral period, but that there will be losses permanent due to the obstruction of economic activity as an effect of the calamity.
The updating of assets and rights abroad, in particular, contributed to a 44.82% increase in the collection of Personal Income Tax (IRPF) by raising 7.2 billion reais.
Taxation on exclusive funds, which since the beginning of the year has been present as a positive factor for collection performance after its approval by Congress last year, generated around 820 million reais in revenue in May.
The tax authorities also mentioned as a significant element for revenue in the period from January to May the real growth in social security revenue, of 5.92%, which was due to the real increase in the wage bill.
Impact of the calamity in RS
Tax auditor Marcelo Gomide reported, however, that the growth in social security revenue in the month was “modest” due to 1.4 billion reais that were no longer collected from taxpayers in Rio Grande do Sul.
In May, the resources administered by the Revenue, which include the collection of taxes under the Union’s jurisdiction, increased 10.40% in value adjusted for inflation compared to a year earlier, to 196.7 billion reais. In the period from January to May 2024, the gain was 8.74%, totaling 1.035 trillion reais.
Revenues administered by other bodies, with a large weight from royalties on oil exploration, increased 12.60% in May compared to the same period in 2023, to 6.3 billion reais. From January to May, these resources had a real increase of 8.41%, totaling 54.9 billion reais.
The collection performance helps the government in the search for a zero primary deficit this year. The economic team has essentially relied on revenue gains to improve the fiscal trajectory.
Carf
Asked about the contribution of resources obtained from judgments by the Tax Appeals Administration Council (Carf), Malaquias said that there are still ongoing negotiations with the taxpayers involved regarding the form of payment and therefore the impact on revenue is still unclear. .
“These negotiations are a process, it is not automatic. We believe that this process will continue until the end of the year. To date, the amounts collected are not recorded,” he said.
He added that the progress of the cases judged by Carf is being “positive”.
Last year, with the support of government efforts to increase revenue, Congress approved a project that resumed the Executive’s tie-breaking vote on Carf decisions, with special payment conditions in these cases. The economic team expects the trials to generate revenue of 55 billion reais this year.
Malaquias also indicated that it is “difficult” at the moment to point out the isolated effects of measures approved last year, also citing the subsidy law. He signaled that such values should only be known next year.
#Federal #revenue #totals #billion #marks #6th #monthly #record #row