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Find out how much you pay in taxes throughout your life and how this impacts your pocket in Brazil

Written by Rafaela Fabris
Published 03/06/2024 às 16:00
Find out how much you pay in taxes throughout your life and how this impacts your pocket in Brazil
Do you have any idea how much you pay in taxes throughout your life? Everyone knows that Brazil is one of the countries that charges the most taxes in the world, but are we aware of how much this really affects our daily lives? Let's understand better. Image: Economy Manual/Disclosure

Do you have any idea how much you pay in taxes throughout your life? Everyone knows that Brazil is one of the countries that charges the most taxes in the world, but are we aware of how much this really affects our daily lives? Let's understand better.

In Brazil, the average is that you work around 150 days, or 5 months a year, just to pay taxes. This means that, every 3 years, you work 1 year and 3 months just to cover the State's costs. Considering that you start working at 18 and continue until you are 65, of the 47 years of your active life, 19 will be spent working just to pay taxes.

Comparing with other countries in Latin America, we see that Argentines work around 136 days to pay taxes per year, while in Mexico it is 108 days, in Uruguay 84 days and in Chile only 68 days per year. All of these countries have a higher Human Development Index (HDI) than Brazil, showing that the longer working time to pay taxes here does not translate into better public services.

Many of the taxes we pay in Brazil are indirect, embedded in the products we buy

For example, basic items like rice and bread are taxed at around 16% to 18%. Items such as mayonnaise and meat can have rates of 33% and 29%, respectively. Products considered superfluous, such as chocolate and soda, may have taxes of up to 56%.

The Brazilian tax system is extremely complex, with different tax rates for different products and states. This makes it difficult even for the government to know exactly how much tax is charged on each product.

All this complexity creates a waste of time and money, which is ultimately passed on to the consumer.

If we consider that you earn a salary of R$2.000 per month, over 19 years of work dedicated solely to paying taxes, you will have paid around R$600.000 to the government. This amount is enough to buy land and build a house in many parts of Brazil.

It is worth reflecting on whether the services and benefits we receive from the government are equal to what we pay in taxes. Will these 19 years of working just to pay taxes translate into whatquality of life e efficient public services? Leave your opinion in the comments and share your thoughts on this important topic.

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Rafaela Fabris

Talks about innovation, renewable energy, oil and gas. Updates daily on opportunities in the Brazilian job market.

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