Federal tax collection plummets in Brazil
Brazil’s federal government tax revenues dropped by 12.1% y/y to BRL 665.9bn in the first half of 2020. In June alone, the decline was by by 28.1% y/y, in nominal terms, to BRL 86.3bn. This is a slight improvement compared to May, when the federal tax collection plunged by 31.7% y/y to BRL 77.4, the lowest figure in seven years.
The federal government revenues in Brazil suffered due to the COVID-19 pandemic, as the decline in economic activity harmed the tax collection. The government also offered tax exemptions and postponement of tax payments to help households and companies with financial difficulties to overcome the crisis.
Further data and analysis on Brazil’s economy could be found on the CEIC Brazil Economy in a Snapshot – Q2 2020 report.