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Brazil tax revenues drop for 5th month in a row in October
November 23, 2012 / 5:05 PM / 5 years ago

Brazil tax revenues drop for 5th month in a row in October

* Federal tax revenues drop 3.27 pct from October 2011

* Brazil to miss budget target as tax revenues fall

SAO PAULO, Nov 23 (Reuters) - Brazil’s federal tax collection fell for the fifth straight month in October from the same month a year earlier, reflecting a still incipient economic recovery, official data showed on Friday.

Federal tax revenues fell 3.27 percent in October compared with October 2011 to 90.516 billion reais ($43 billion), but were in line with the median of six forecasts for a tax income of 91 billion reais, the federal tax authority said.

In September, the federal government had collected 78 billion reais in taxes.

The drop in tax revenues reflects Brazil’s slow pace of growth, a far cry from much of the past decade when tax collection soared on the back of a booming economy.

Tax income also dropped after the government offered a slew of tax cuts to shore up local industries.

Slowing tax income is one of the reasons why Brazil will not meet its budget target this year and likely will also miss in 2013, according to a Reuters poll earlier on Friday.

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