The government recorded a real decline of 3.2% in import tax revenue in the first month after the tax increase, the Receita Federal do Brasil reported on Tuesday (24).<\/p>\n
According to official data, revenue from import taxes totaled R$7.17 billion in February this year\u2014when part of the tax hike came into effect\u2014compared to R$7.4 billion in the same month last year. The figures have been adjusted for inflation.<\/p>\n
The controversial increase in import taxes on around 1,000 products was justified as a measure to protect the domestic industry. The move received strong negative backlash on social media.<\/p>\n
According to the Federal Revenue Service, the drop in revenue is linked to a 1.24% decline in the value (volume) of imports and a 9.8% decrease in the average exchange rate.<\/p>\n
In other words, with both a reduction in the quantity of imported goods and in their value in reais (due to a weaker dollar), tax revenue also declined\u2014even with the higher tax rate.<\/p>\n
The agency noted that only part of the import tax increase took effect in February, with the remainder implemented at the beginning of March.<\/p>\n
When the measure was announced, the Ministry of Finance said it expected to raise an additional R$14 billion this year from the higher import tariffs.<\/p>\n
On Tuesday, tax authorities confirmed that the final amount should come close to that figure.<\/p>\n
Asked by journalists, Claudemir Malaquias, head of the Federal Revenue\u2019s Center for Tax and Customs Studies, downplayed the decline in revenue. \u201cWe still have the whole year ahead of us,\u201d he said.<\/p>\n
Source: G1<\/a><\/p>\n