Brazil posts record tax revenue for month of April

* Brazil’s tax revenue jumps 16.8 pct in April vs year ago

* Revenue increases due to strong economy

BRASILIA, May 18 (BestGrowthStock) – Brazil’s tax revenue reached a
record for the month of April, the government said on Tuesday,
as solid economic activity boosted government income.

Adjusted for inflation, tax income rose to 70.91 billion
reais ($40 billion) in April, a 16.8 percent jump from the same
time a year ago. In the first four months of the year, tax
receipts totaled 259.2 billion reais, a 12.5 percent jump from
the same time in 2009.

The jump was mainly due to heated economic activity and it
was unlikely that even the euro zone crisis would affect tax
collection, Otacilio Cartaxo, head of the federal tax authority
told a news conference in Brasilia.

“The domestic market is so robust that I think tax
collection should remain (at these levels),” Cartaxo said.

Revenues would continue to grow at above 10 percent during
the year, he added.

Government revenues deteriorated rapidly during the global
financial crisis last year as the country sought to revive
dwindling growth with a series of tax breaks that helped put
pressure on public coffers.

Now, Latin America’s largest economy is expected to grow
more than 6 percent with some estimates for growth in 2010 as
high as 7.5 percent.

The data also comes only days after the government took
measures to cool the economy, with additional public spending
cuts of 10 billion reais from the 2010 budget. The total cuts
for the year would amount to 1 percent of gross domestic
product. For more see [ID:nN13116480].
($1=1.799 reais)
(Reporting by Isabel Versiani; Writing by Ana Nicolaci da
Costa; Editing by James Dalgleish)

Brazil posts record tax revenue for month of April