Brasília – The economy’s weak performance and tax incentives made federal revenues reach the worst result for a H1 in four years. According to the Federal Revenue, the government collected R$ 607.208 billion (US$ 192.5 billion) from January to June. The amount represents a decline of 2.87% over the same period of last year, apart the official inflation index measured by the Extended National Consumer Price Index (IPCA). Revenues collected are the lowest for the first six months of the year since 2011.
In June, federal revenues stood at R$ 97.091 billion (US$ 30.79), a decline of 2.44% over June of last year and the worst result for the month since 2010, also with values corrected by the IPCA. Despite the negative performance, a slightly improvement over May was registered, a month when the month-by-month decline reached 4.03%.
According to the Federal Revenue, primary factors weighing down on revenues were a 6.25% decline in industrial production and a 5.09% reduction in sales of goods and services. The fact that total wages paid grew less than inflation also contributed.
*Translated by Sérgio Kakitani & Gabriel Pomerancblum
