Brazil’s Federal Tax Revenue Growth in November

BRASILIA (Reuters) – Brazil’s federal tax revenue experienced double-digit growth in November, according to the revenue service. This trend reflects the strong momentum seen throughout the year, as the government strives to enhance revenue for improving the country’s primary budget balance.

The government, led by leftist President Luiz Inacio Lula da Silva, aims to eliminate the primary deficit this year, not including interest payments. Officials confirmed that this target includes a tolerance margin of up to 0.25% of gross domestic product (GDP), allowing for a deficit of up to 28.8 billion reais.

In November, total federal tax revenue reached 209.2 billion reais ($34.4 billion), marking an 11.21% increase in real terms compared to the same month last year. Year-to-date, tax revenue increased by 9.82%, totaling a record 2.4 trillion reais. This growth is attributed to government measures targeting higher taxation on investment funds that previously held tax benefits, as well as the reinstatement of fuel taxes.

Further contributions to the year-to-date revenue were driven by increased collections on imported goods amid resilient economic growth and a stronger U.S. dollar, alongside 7.4 billion reais raised through the regularization of foreign assets and rights.

Exchange Rate: ($1 = 6.0765 reais)

Note: ($1 = 6.0640 reais)