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Last Year Was a Positive Period for the Economy, With the Federal Government Benefiting from the Creation of New Jobs. The Improvement in the Economy Was Reflected in Job Generation, Resulting in Greater Momentum for the Country’s Prosperity and Helping to Consolidate Confidence Levels in Government Initiatives.
For the First Time in History, the Federal Revenue from Income Tax (IR) Exceeded the Sum of the Revenues of Brazilian States from the Tax on Circulation of Goods and Services (ICMS). The ICMS Is a State Tax Whose Collection Has Been Considered the Main Tax in Brazil for Many Years.
Initially, 2022 Was a Milestone for Tax Revenue in Brazil. According to the National Council of Tax Policy (Confaz), the Federal Revenue Collecting R$ 710 Billion in Income Tax, About R$ 20 Billion More Than the ICMS, Which Reached R$ 690 Billion. For the Year, This Performance Represented a 3% Growth in Total IR Collection.
In 2021, the ICMS Was Responsible for Collecting R$ 652 Billion in Revenue, While the IR Fell 16% Short, Totalling R$ 561 Billion. This Change in Scenario Draws Attention and Shows That State Taxes Are Fundamental for Brazilian Finances.
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Oil feels the weight of the war between the United States and Iran on the same day that Tehran buries its assassinated supreme leader and the world watches to see who will control the Strait of Hormuz, a strategic route for global oil.
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The perks at Nubank are over: the bank announces a monthly fee for HBO Max, which was “free,” with a 12-month term on Ultravioleta, 6 months on Nubank+, and the fee starting from January 2027.
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The Chamber releases R$ 10 billion to hold the price of diesel until December and proves that Brazilian fuel remains tied to Congress.
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Has the charge for sitting together ended? Anac confirms that minors under 16 have the right to a seat next to their guardians without an extra fee, and airlines may be penalized for failing to comply with the new rule.
The Collection of Taxes from the Federal Revenue Started in 1995 and Confaz in 1997. When Comparing the Data from the 26 Year Common Period of Both Series, the ICMS Was the Main Tax Collected, Reflecting a Tax System Primarily Based on Consumption Taxation.
Amanda Klein and Motta Analyze Solutions for ICMS Collection
Reduction in ICMS in 2022
The Collection of ICMS Was Boosted by Factors Such as Economic Recovery, Inflation, and the Rise of Commodities Last Year. However, the Tax Rate Underwent a Change During the Same Period, Which Affected the Collection of the State Tax.
In 2022, to Combat Inflation, the Government of Jair Bolsonaro Reduced the Collection of the Tax in Essential Sectors Such as Fuels, Electricity, and Telecommunications.
Income Tax
The Federal Government Benefited from the Economic Recovery Following a Critical Period Due to the Pandemic. The Corporate Income Tax, Which Applies to Company Profits, Was One of the Main Contributors to the Good Federal Revenue Collection.
Additionally, Withholding Tax Also Contributed to the Increase in Labor Earnings. These Factors Were Driven by the Recovery of the Labor Market Last Year, Highlighting Successful Hires Related to Services Provided, Which Were Very Successful in 2022.
