Tax Revenue In Brazil
Tax revenue in Brazil forms an important part of the Brazilian annual GDP, and has increased year on year. In this article, we will look at how much tax revenue was made in Brazil between 2007 and 2014.
The months when tax revenue are the highest are January and December as industrial production, sales of goods, services and overall wages are at their highest levels of the year. In this previous article, it is possible to access a list of the 10 taxes with most revenue in Brazil.
Tax revenue
In this section we will outline the tax collection for each year between 2007 and 2014.
Tax collection in 2007
In 2007, tax revenue amounted to BRL 602,8 billion, a registered growth of 16,33% when compared to 2006. Deducting the inflation for 2007, the real registered growth of tax revenue from 2006 to 2007 was 12,19%.
Tax collection in 2008
BRL 685,6 billion was collected in taxes in 2008, representing a growth of 12,82% when compared to 2007. Subtracting the inflation for 2008, there was a real growth of 6,81% in tax revenue from 2007 to 2008.
Tax collection in 2009
The Brazilian government earned BRL 698,2 billion from tax collection in 2009 with a growth of 1,84% when compared to 2008. Minus the inflation for 2009, there was a reduction in tax collection from 2008 to 2009 of 2,96%.
Tax collection in 2010
In 2010, tax collection in Brazil amounted to BRL 805,7 billion, posting a growth of 15,38% compared to 2009. Deducting the inflation for 2010, a growth of tax revenue at a rate of 9,85% was observed between 2009 and 2010.
Tax collection in 2011
Tax collection in 2011 amounted to BRL 970 billion, registering a growth of 17,35% when compared to 2010. When the inflation for 2011 is deducted, the real growth of tax revenue from 2010 to 2011 was 10,10%.
Tax collection in 2012
BRL 1,03 trillion was collected in taxes in 2008, representing a growth of 6,12% when compared to 2011. Minus the inflation for 2012, there was a real growth of 0,70% in tax revenue from 2011 to 2012.
Tax collection in 2013
In 2013, tax revenue added up to BRL 1,13 trillion, corresponding to around 23,5% of the Brazilian GDP and when compared to 2012, the registered growth was 10,6%. Deducting the inflation for 2013, the real growth in tax revenue from 2012 to 2013 was 4,08%.
Tax collection in 2014
Despite data for the whole year of 2014 still not being available and the results only showing tax revenue until October 2014, it is already accurate to say that 2014 was another year where tax revenue grew, when compared to the previous year. More than BRL 101 million was collected in October 2014, a growth of 5% when compared to October 2013. From January 2014 to October 2014, tax collection in Brazil added up to to BRL 968 million, a growth of 6,75% when compared to the same time frame in 2013. Deducting the inflation for 2013 up to October, the real growth for 2014 was 0,45%.
Direct and Indirect Taxes
It is important to mention that there are two different kinds of taxes: direct taxes and indirect taxes. According to a survey by KPMG International, the tax structure in Brazil is balanced, with nearly 50% of all tax revenue being generated over indirect taxes. The most important indirect taxes in Brazil are:
Indirect taxes on goods and services, for example, account for 49,7% of the tax revenue in Brazil, while only 50,3% are formed of the following direct taxes:
- Taxes on payroll - 26,6%
- Taxes on profit - 17,9%
- Taxes on real estate - 3,9%
- Taxes on financial transactions - 1,9%