Federal Revenue reaches R$208 million in June 2024, with growth of 11.02%

In June 2024, total Federal Revenue collection reached R$208,844 million, marking a real increase (IPCA) of 11.02% compared to the same period of the previous year. In the accumulated period from January to June 2024, collection totaled R$1,289,464 million, representing an increase in the IPCA of 9.08%. The information was released by the Federal Revenue Service.

According to the balance sheet, the Revenues Managed by the Brazilian Federal Revenue Service (RFB) recorded a collected amount of R$ 200,533 million in June 2024, showing a real growth of 9.97% compared to the previous year. In the period from January to June 2024, the collection of Managed Revenues totaled R$ 1,235,285 million, with a real increase of 8.93%.

André Galhardo, economic consultant at Remessa Online, reports that a large part of the increase in the first months of this year was influenced by the fiscal effort made throughout last year, such as taxation of exclusive funds.

“It is the result of an effort to correct part of this inefficient system, which charges a lot from those who have little and very little from those who have a lot. I think it is positive, and we cannot lose sight of the fact that the tax reform needs to continue. We need, at a later stage, to address this regressiveness and reduce the weight of the tax burden on small and medium-sized companies and low-income people,” he points out.

Expectations

For the second half of 2024, Galhardo states that the increase in revenue should continue, but at a less intense pace.

“We are working to reduce the inefficiency of the Brazilian tax system a little and, on the other hand, we cannot lose sight of the need for a more careful look at the Brazilian government’s expenses; I see the second half of the year with good eyes, we must continue to monitor this increase in revenue, but at a less intense pace.”

“We saw extraordinary inflows of resources throughout the first half of the year that should not happen again in the second,” he adds.

Payroll tax relief

For Roberto Piscitelli, member of the Economic Policy Commission of Cofecon, this growth is impressive when compared with any other indicators of the level of economic activity.

“This means that it is above expectations. This is very important given the primary deficit projection and concerns about the fiscal framework. And it comes at a time when there is strong resistance from the National Congress to maintaining, for example, the extension of the payroll tax exemption for 17 sectors of the economy, which has a very strong impact on revenue,” he highlights.

The payroll tax exemption was created in 2011 as a temporary replacement for the social security contribution on payroll, with rates varying from 1% to 4.5% on gross revenue. Initially scheduled to end in December 2023, it was extended until 2027 for 17 sectors of the economy and municipalities with up to 156 thousand inhabitants, but faced legislative back and forth.

The measure would expire in December 2023. However, as it currently benefits 17 sectors of the economy, in August last year the National Congress approved a project that extended the term of the exemption until 2027 and reduced the social security contribution rate for municipalities with up to 156 thousand inhabitants, facing legislative back and forth.

Since the end of last year, the National Congress and the government have been seeking an agreement. Minister Edson Fachin, of the Federal Supreme Court (STF), extended the suspension of the process that deals with the tax exemption until September 11.

The Federal Revenue Service has warned that the payroll tax relief will cost more than R$26 billion this year, increasing the public deficit to R$28.8 billion and leading to the blocking of R$15 billion in the federal budget. Senator Izalci Lucas questioned these figures, pointing out that the relief was already in effect last year.

The government leader in Congress, Randolfe Rodrigues, mentioned that the economic team is considering suggestions from senators, such as taxing international shopping websites, to make it possible to vote on the project without compromising the goal of fiscal balance.

Read more:

STF extends suspension of payroll tax relief proceedings until September

AGU requests suspension of payroll tax relief process to the Supreme Court