Brazilians pay record taxes in 2011

Brazilian Internal Revenue Service (Receita Federal) announced a new records showing that taxes are moving put with the economy. Dolar is stable and country risk is down but GDP prognostics for 2011 are decelerating.

The first quarter of 2011 set a record for the period of R $ 311.349 billion. This amount represents a growth of 18,4% when compared to the same period of 2010.   April  R $ 85.155 billion in April. The amount includes all federal taxes and social security contributions to the National Social Security Institute (INSS). Compared to March, an increase of 19.96% nominal and real increase of 19.05%. In comparison with April 2010, there was real growth of 10.34%, according to Jornal O Globo.

Interesting to notice also that other income (extraordinary gatherings, such as royalties from oil and other atypical inflows) reached R $ 4.648 billion in April, with real advancement of 183.44% compared to March. Considering the comparison with April of last year, there was real growth of 7.83%. (It shows a clear correlation with oil extraction and what else?)

Social Security

The social security income, in turn, totaled U.S. $ 80.951 billion in the quarter, with net increase of 9.71% over the same period last year.

At the same time, risk of the country decreases and dolar versus Brazilian real is stable

Considered one of the key barometers of confidence of investors, Brazil’s EMBI + index, calculated by JP Morgan Chase Bank, closed the day at 162 points, falling 1.61% compared to yesterday, which closed at 163 points. Week, is down 3.57%.

The dollar futures contracts traded on the Commodity Futures Exchange (BMF) in closed slightly lower on Friday.

The contract for June 2011, the most liquid, closed at R $ 1.617, down 0.11%. The salary for July was quoted at R $ 1.627, a decline of 0.10%. The contract for August closed at R $ 1.637, a decrease of 0.11%.

GDP decelerating 

According to the Central Bank´s IBC-Br index, GDP growth was roughly 1.3% in 1Q11. The Central Bank´s estimate is in line with market forecasts. It is also in line with expectations that economic growth should slow down to around 4.0% in 2011, from 7.5% in 2010. Key issues, however, continue to be whether the tightening of economic policies will keep leading economic growth down and if such deceleration will be fast and strong enough to minimize the risk of inflation.  Source: Banif

Advertisements

About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil.
This entry was posted in Economy and tagged , , , , . Bookmark the permalink.

One Response to Brazilians pay record taxes in 2011

  1. Pingback: Brazilians pay record taxes in 2011 (via Brazil Global) « Expat American Living in Brazil

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s