Federal Taxes in Brazil
The table below shows the federal taxes collected in Brazil in 2007 and 2008; the original data was published by Receita Federal, and can be found here (the table is found on page 30).
The total of taxes in 2008 was about R$ 276 billion, whereas the total of contributions was around R$ 209 billion. In 2007, totals had been R$ 232 billion for taxes and R$ 226 billion for contributions.
Contributions have been growing faster than taxes. Reasons: it is easier for the Government to create a new contribution than to create a new tax; the Federal Government must share part of IR and IPI with States and municipalities, whereas the full contributions are retained - hence, for the Federal Government it is better to increase contributions than taxes. Read more about taxes and contributions.
The CPMF was a contribution levied on financial transactions; everytime a check was drawn or funds were moved, both the creditor and the debtor had to pay 0.038% of the transaction as CPMF; besides, CPMF was useful to trace all non-accounted money.
CPMF existed only until December 2007; some residual money was paid in 2008. Interesting to notice that, as soon as the Congress extinguished CPMF, the Government increased IOF, a tax on financial transactions, which supposedly should be levied on loans and insurances only; every check drawing or fund moving paid 0.038% IOF in 2008.
The item Social Security Contributions refers to the money that is paid by employers and employees to the public social security system.
The item Other Federal Revenues refers to money which is not collected by Receita Federal, such as, for example, the funds received by Prosecution of debtors, and revenues derived from privatization of public companies.
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