Brazil’s federal tax revenue rose 8.97% in real terms in July compared with the same month a year earlier, reaching R$289.346 billion, the highest level for July since the government’s historical series began in 1995. The increase was supported by a non-recurring gain of R$3.161 billion from oil export taxes, introduced temporarily to offset the economic impact of the Middle East conflict.
Excluding the atypical oil-related revenue, the real growth in tax collection administered by the Federal Revenue of Brazil (Receita Federal) would have been 6.44%, according to data released on Tuesday. Total revenues administered by the tax authority amounted to R$268.859 billion in July, up 7.71% in real terms year-over-year.
Revenues administered by other public bodies, influenced by oil commercialization, totaled R$20.486 billion, a real increase of 28.87%. The Social Security revenue category rose 5.50% in real terms, driven by growth in the national wage bill, higher Simples Nacional collections, and the reintroduction of payroll taxes for select sectors.
Capital gains income tax surged 29.47%, while corporate income tax and the Social Contribution on Net Profit (IRPJ and CSLL) increased 4.52%. Over the January-to-July period, federal revenue grew 6.98% above inflation, totaling R$1.877 trillion.
