The Internal Revenue Service registered a collection of R$ 178.7 billion in October, which represents a growth of 4.9% above inflation. Although positive, the result interrupted a sequence of records for the indicator.
The data, released this Wednesday (24), is the second highest for the month in the historical series started in 1995. In real terms, the number for 2016 was the best ever recorded, with a level of R$ 188.4 billion .
Of the first ten months of 2021, only January, June and now October did not present a historic record.
The result accumulated from January to October, however, is still the highest in the series. During the period, the federal collection was R$ 1.527 trillion.
The Secretary of Revenue, José Barroso Tostes Neto, explained that last month’s result was lower than in 2016 only because that year there was a concentrated collection of the special exchange and tax regularization regime, which generated an extraordinary gain of R$ 46 billion.
“With this level of performance maintained, the federal tax collection in 2021 should be the highest registered to date in any year. One of the greatest effects of this excellent performance is its decisive contribution to the reestablishment of fiscal balance,” he said.
Tostes also stated that last month’s data was not better due to the high impact of tax offsets, a mechanism used by companies to recover or use tax credits.
“These very good results in October could have been even better if it weren’t for a significant increase in tax offsets. The offsets were R$ 24 billion in October,” he said.
The trajectory of government revenues showed a strong increase after the cooling of the coronavirus pandemic, also driven by high inflation, due to the incidence of taxes on the nominal value of products.
However, as of July, this pace of growth began to weaken. The peak accumulated in 12 months was 26% in July, falling to 23% in August, 22% in September and 20% in October.
In recent interviews, Minister Paulo Guedes (Economy) has stated that the economy has shown a “V”-shaped recovery and that a slowdown should now be observed, a slowdown in the pace of growth.
In October, part of the economic indicators weighed negatively on the tax revenue result. Despite a strong increase in the dollar value of imports (46%) and a growth in the value of electronic invoices issued (16.8%), there was a 4.8% decline in industrial production and a fall of 4.2 % on sale of goods.
In the breakdown by type of tax, the biggest increase was in Corporate Income Tax and Social Contribution on Net Income, with an increase of R$9.5 billion, equivalent to 26.9%.
The second biggest growth was R$ 3.8 billion in the IOF (Financial Operations Tax) account. The percentage increase was 350%. The difference is explained by the increase promoted in the rate of this tax from September this year, with the objective of financing social programs, in addition to the reduction of this same tax in 2020 to make credit cheaper during the pandemic.
On the negative end of the table, there was a 15.9% drop in Pis and Cofins collections, in addition to a 14.5% drop in social security revenues.
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