According to the Revenue Department, record collection reflects economic recovery

posted on 01/26/2022 05:59 / updated on 01/26/2022 05:59

  (credit: Agência Brasil/Reproduction)


(credit: Agência Brasil/Reproduction)

The federal government’s total tax collection reached R$ 1.88 trillion in 2021, the best annual result since 1995, according to data released yesterday by the Federal Revenue. In comparison with 2020, a year that was marked by the beginning of the covid-19 pandemic and its recessive effects on the economy. The volume of collections grew by 17.3% in real terms (excluding inflation for the period). In December of last year alone, BRL 193.90 billion were collected – a real growth of 10.76% compared to the same month of 2020.

According to the Revenue, the good result of last year can be explained, mainly by non-recurring factors, such as extraordinary collections of approximately R$ 40 billion, of the Corporate Income Tax (IRPJ) and the Social Contribution on Net Income. (CSLL) of companies.


pri-2601-cofrecheio Federal Taxes Revenue

pri-2601-cofrecheio Federal Taxes Revenue
(photo: Thiago Fagundes)

Together, the collection of these two taxes reached 393.1 billion in 2021, an increase of 31.1% compared to 2020. Another tax that helped boost the federal government’s revenue was the Tax on Financial Operations (IOF), which totaled R$ 50.8 billion, an increase of 106.3% compared to the amount collected in the previous year.

In a virtual press conference yesterday, to comment on the data, the special secretary of the Federal Revenue, Julio Cesar Vieira Gomes, said that the increase in collection in 2021 was “very expressive, considering that we are still going through a pandemic period”.


Recovery

The Revenue Secretary highlighted that the first factor to explain this result was the economic recovery. According to him, data for January this year indicate “that the economic recovery will increase”. He also said that “companies had increasing profitability in 2021”, with the collection of the Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) growing 31% last year.

The head of the Tax and Customs Studies Center of the Federal Revenue, Claudemir Malaquias, detailed that there was a significant increase in revenue from the metallurgy and mineral extraction sectors.

Economist Frederico Gomes, from Ibmec, stated that the Federal Revenue updates the IPCA collection figures. “However, there are many taxes that end up following more producer price indices such as the IGP-M, whose variation has been much greater than that of the IPCA. So, this ends up helping tax revenue,” he said.

For the economist, last year’s inflation and other conjunctural issues, such as the rise in commodity prices seem to have greatly helped the collection. He warned, however, that good tax revenue figures may not be repeated. “These successive records of collection that we saw throughout 2021 would not be, for many people, a structural improvement in collection, but rather a conjunctural improvement helped, mainly by the effect of inflation”, he added.

Bernardo Motta, a researcher in Applied Economics at the Brazilian Institute of Economics at Fundação Getulio Vargas (FGV-Ibre), makes a similar analysis. He stated that the result was very good. “It was above initial expectations. No one, at the beginning of the year, expected a result of this size for 2021”, he pointed out.

“There were also a series of atypical collections specifically within the collection, the Corporate Income Tax (IRPJ). This was the tax that had a better performance this year, so there were a series of conjunctural factors that ended up leading to this growth”, he evaluated. “However, it is not possible to project that this year will have the same performance, or at the same level”, completed Motta.

According to economists, the weaker pace of economic activity expected this year should not allow tax collection to continue at the same pace. be only 0.29% in 2022, compared to an increase of 4% last year.

exemptions

The exemptions granted by the government resulted in a tax waiver of BRL 93.746 billion in 2021, a lower amount than in 2020, when they stood at BRL 101.741 billion. In December alone, exemptions totaled BRL 9.470 billion, above the amount recorded in the same month of 2020 (BRL 8.780 billion).

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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