The Union’s revenue from taxes and other revenues reached a record for the month of July, reaching R$231.04 billion, according to data released this Thursday (22) by the Federal Revenue Service. The result represents a real increase of 9.55%, that is, discounting inflation, in values corrected by the Broad National Consumer Price Index (IPCA), compared to July 2023.
It is also the best revenue collection performance for the period from January to July. In the period, revenue reached R$1.53 trillion, representing an increase in the IPCA of 9.15%.
Collection data is available at website from the Federal Revenue Service.
As for revenues managed by the agency, the amount collected last month was R$214.79 billion, representing a real increase of 9.85%. In the year to date, revenue collection reached R$1.45 trillion, a real increase of 9.07%.
The results were positively influenced by macroeconomic variables, resulting from the behavior of productive activity and, atypically, by the taxation of exclusive funds, updating of assets and rights abroad and by the return of taxation of the Social Integration Program/Contribution for Financing Social Security (PIS/Cofins) on fuels.
Furthermore, there was an increase in revenue during the month due to the state of emergency in Rio Grande do Sul, due to the extension of deadlines for collecting taxes in some municipalities in Rio Grande do Sul. On the other hand, the situation led to a loss of revenue for the year as a whole. The state was hit by floods in April and May, which worst climate disaster of its history, with the destruction of structures and impact on families and businesses. Of the 497 municipalities in Rio Grande do Sul, 478 were affected.
“Without considering atypical payments, there would be a real growth of 6.77% in revenue for the accumulated period and 8.28% in revenue for the month of July,” reported the Federal Revenue Service.
Atypical recipes
In the year to date, the Federal Revenue Service estimates the loss of revenue due to the deferral of federal taxes due to the public calamity decrees of the municipalities of Rio Grande do Sul at R$7.3 billion.
Considering only the month of July, there was an additional revenue of R$700 million due to the extension of the deadlines for collecting taxes in some municipalities in Rio Grande do Sul. Social security contributions due in April, May and June 2024 were postponed to July, August and September 2024, respectively. While the Simples Nacional due in May was postponed to June and the one due in June was postponed to July.
Contributing to improving revenue, in July, there was an extra collection of R$270 million in Income Tax Withheld at Source (IRRF) – Capital Income, referring to the taxation of exclusive funds, which did not occur in the same month of 2023. From January to July, this extra collection reached R$13 billion. The law that changes the Income Tax levied on closed-end investment funds and on income obtained abroad through offshores was sanctioned in December of last year.
Even so, in the month of July, the collection of IRRF-Capital Income decreased by 1.11% compared to July 2023, reaching R$8.75 billion, mainly due to the drop in revenue from fixed income investments and funds. In the year to date, the collection from this item reached R$81.93 billion, a real growth of 17.83%, with R$13 billion resulting from the taxation of exclusive funds.
Based on the same law as offshore, Individuals living in Brazil who hold financial investments, profits and dividends from companies controlled abroad had until May 31 to update their assets and rights abroad. As a result, in the year to date, Personal Income Tax collected R$45.36 billion, with real growth of 18.14%. With regularization alone, R$7.49 billion was collected.
The re-taxation of PIS/Pasep (Social Integration Program/Public Servant Asset Formation Program) rates on fuels helped to avoid revenue losses. In July 2023, the tax relief on these taxes amounted to R$3 billion.
On the other hand, in July 2023 there was revenue of R$1.07 billion from the export tax on crude oil, which was not the case in July of this year. In the accumulated total for 2024, the loss in revenue from this item reached R$3.57 billion from the export tax on crude oil, which was part of this aggregation.
Other highlights
PIS/Pasep and Cofins (Contribution for Social Security Financing) were also highlights of July’s revenue, which together raised R$45.26 billion last month, representing real growth of 22.04%. Year-to-date, PIS/Pasep and Cofins raised R$302.46 billion. This performance is explained, among other things, by the return of taxes on fuel and by productive activity, with an increase in the sale of goods and services.
Last month, there was an increase in the collection of Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL), which is levied on corporate profits. The collection totaled R$52.15 billion, with real growth of 6.2% over the same month in 2023. The result is explained by the real increase of 8.04% in the collection of the quarterly balance sheet and 9.67% in the presumed profit.
Social Security Revenue totaled R$53.559 billion in July, with real growth of 6.04%. This result is due to the real increase of 5.81% in the wage bill and the postponement of payments to municipalities in Rio Grande do Sul, in addition to the 15% growth in the amount of tax compensations with social security revenue debts, in the period from January to July 2024 compared to the same period of the previous year.
In the year to date, Social Security Revenue had a real increase of 5.45%, reaching R$371.69 billion.
Macroeconomic indicators
The Federal Revenue Service presented the main macroeconomic indicators that help explain the performance of revenue collection in the month, all of which were positive.
Among them are the growth in the sale of goods and services, respectively, of 2% and 1.3% in June (generating factor of July’s revenue) and an increase of 3.58% and 1.38% between December 2023 and June 2024 (generating factor of the revenue of the accumulated period).
Industrial production also rose 5.63% last June and 2% in the accumulated period. The dollar value of imports, linked to industrial performance, rose 18.39% in June 2024 and 5.54% between December 2023 and June this year.
There was also a 10.28% increase in the wage bill in June and a 11.38% increase in the accumulated total for the month.
