Federal tax receipts in Brazil dropped in July

Following the decline in economic activity due to the COVID-19 pandemic, tax revenues collected by the federal government dropped by 15.8% y/y to BRL 116bn in July. The July figure is an improvement compared to the previous months, as the federal tax collection plummeted by 27% y/y, 32% y/y and 28% y/y, respectively, in April, May and June.

Tax revenues collected by the federal government dropped by 15.8% y/y to BRL 116bn in July

On a year-to-date basis, the tax collection of the central government fell by 12.7% y/y to BRL 782bn, compared to BRL 895bn between January and July 2019. In addition to the impact of the crisis on tax collection, the adoption of tax exemptions and postponements also had a negative impact on the government’s revenue.

Further data and analysis on Brazil’s economy could be found on the CEIC Brazil Economy in a Snapshot – Q2 2020 report.