Brazil Tax Revenue Rises In October As Economy Rebounds
SAO PAULO -(Dow Jones)- Brazil tax receipts rose in October for the first time
in 11 months following one of the worst global recessions in a generation.
The federal tax department said on Monday that October tax receipts rose 0.9%
to 68.8 billion Brazilian reals ($40.4 billion). In comparison with September,
tax income to the federal government was up 33.2%, discounting inflation.
Tax receipts have been on the decline since last November, when the full force
of the U.S. and European banking crisis hit Brazil. So far this year, the
government brought in BRL559.6 billion, down 6.8% from the same 10 month period
in 2008.
The government has been giving major industrial segments of the economy - from
auto makers to home appliance manufacturers - large tax breaks since late last
year. Those tax breaks are now coming to an end, especially for auto makers. For
example, in October the government collected 24% less, or BRL2.9 billion, in the
so-called IPI industrial tax that car makers and home appliance makers have been
exempt from since last November. Car maker tax breaks alone have led to a 63%
reduction in October IPI tax revenues, according to government numbers released
Monday.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@
dowjones.com
(END) Dow Jones Newswires
11-23-090934ET
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