Recently, according to the information released by the Commercial Association of São Paulo (ACSP), Brazil, according to the annual tax revenue recorded by the agency’s statistical platform “Tax Table” in 2020, this year will be the first time that the annual tax revenue of the country has declined since the establishment of the Taxable Table in 2005.
According to ACSP’s forecast, by the end of this year, the total tax revenue of government agencies at the municipal, state and federal levels across Brazil may be 17.85% lower than last year.
It is expected that by 23:59 on December 31, the government treasury will receive taxes of about 2.057 trillion Brazilian reals.
Analysts pointed out that the decline in total tax revenue this year is closely related to the impact of the epidemic on business activities, especially in the two major areas of services and retail, which account for 70% of Brazil’s job market.
ACSP expects Brazil’s total tax revenue to grow in 2021, considering that major business activities such as services and retail may not be restricted at the peak of this year’s pandemic, and that the Brazilian government has begun to formulate policies to stimulate taxes.
