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LatinNews Daily - 21 April 2021

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In brief: Brazil hails strong tax take in March

* Brazil’s economy ministry has reported that the government saw a tax take of R$137.9bn (US$24.76bn) in March, an 18.49% increase on the tax take a year earlier, and a total R$445.9bn in tax revenue in the first quarter of 2021 (a 5.64% year-on-year increase). According to the economy ministry, these figures are the highest for both the month of March and Q1 since 2000. This strong tax take can be in part explained by non-recurring factors such as an unusual R$10.5bn collection in Q1 from the IRPJ/CSLL corporate income taxes. Economy Minister Paulo Guedes welcomed the March tax results, declaring these figures “important because [tax] collection is a proxy for the level of economic activity in the formal economy”.  Guedes repeated his refrain that these results show Brazil to be on a trajectory of economic recovery after the economic crisis caused by the coronavirus (Covid-19) pandemic last year, although he did acknowledge that the current wave of infections will be felt in the economy.