Taxes on the wealthy in Brazil generate the best collection in history in January

he tax To investment funds Extremely rich to Brazil Implemented by the government of President Luis Inacio Lula da Silva allowed to Collect taxes January was the best in history.

The rise in collections, which reached nearly 7% on an annual basis, is considered the main key to the zero deficit goal set by Finance Minister Fernando Haddad. By 2024, within the new fiscal framework, which replaced the 20-year public spending cap that prevailed from 2016 until last year. The federal tax collection body, Receita Federal, affiliated with the Ministry of Finance, said.

Brazilian tax collections reached 280,636 million reais ($56,800 million) in January.

The result is the best recorded in real terms for all months in the historical statistics series, which began in 1995.

The tax imposed on investment funds exclusive to the so-called ultra-rich was fundamental to the outcome of the combination

It was one of the factors that contributed positively to the outcome Taxation of investment funds exclusive to the so-called ultra-rich, Which achieved 4.1 billion riyals, $830 million, a real growth of 24.4%.

Head of the Center for Tax and Customs Studies of Federal Revenue, Klodimir Malachias, He said that the law amending taxes on offshore companies and exclusive investment funds, which was issued at the end of 2023, allowed achieving permanent income results this year.

January's collection was well above financial markets' expectations, improving prospects for the government's goal of eliminating the fiscal deficit this year.

According to the statement, the wage bill rose by 7.2%, which led to increased income from pensions and work contributions.

On the other hand, the federal government stopped collecting 11 billion riyals (about 2.3 billion dollars) due to tax exemptions for various sectors, especially manufactured products.