In two years, the federal government adds BRL 71 billion in tax waivers

The federal government adds BRL 71 billion in tax waivers in 2021 and 2022, after the approval of measures that reduce or eliminate taxes and taxation.

In the first half of this year, federal revenue reached R$1.024 trillion, a real increase of 9% over the same period in 2021. The economic team has been using successive federal revenue records as a counterpoint to the expected drop in tax revenue.

The amounts that do not go to the public coffers are mainly a consequence of the measures that reduced the Tax on Industrialized Products (IPI), the PIS/Cofins for diesel, biodiesel, kerosene and LPG and also the exemption of these taxes on gasoline and alcohol.

According to the Ministry of Economy, the IPI reduction by 35% was responsible for the R$ 23.6 billion drop in collection, most of the values ​​waived.

Then, the law that imposed a ceiling on ICMS in the states also promoted the exemption of PIS/Cofins and CIDE on gasoline and alcohol and burdened the Budget by 16.51%. Complementary Law 192, on the other hand, generated a loss of R$ 14.9 billion.

Also according to the Ministry of Economy, the drop in revenue comes with an increase of R$ 59 billion in revenues, but which will still be insufficient to cover the waived amounts.

It is worth mentioning, however, that the positive effect that has been seen in the collection should lose strength this year, according to public accounts specialist Murilo Viana. “The good dynamics of collection is transitory. The scenario that comes is of very low GDP and the increase in interest rates in the activity will still be felt in the second half of the year. It is also worth mentioning the effect of this increase in public debt.”, he says.

Surplus expectation for 2022

The special secretary of the Treasury and Budget of the Ministry of Economy, Esteves Colnago, said this Monday (25) that he expects a primary surplus in the federal government’s public accounts in 2022. This would be the first positive result in eight years.

“We expect a surplus, albeit small, from the central government this year. We may have second consecutive year of public sector primary surplus,” he said.

The secretary pointed out that the fiscal deficit projections for this year have been decreasing, given the improvement in revenue.

The government reinforced the additional blockade of BRL 6.7 billion for this year’s budget. In total, the ministry has already announced the need for a block of R$ 12.74 billion to keep the accounts within the spending ceiling.