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LatinNews Daily - 30 June 2021

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In brief: Another strong tax take for Brazil in May

* The Receita Federal, Brazil’s federal tax authority, has reported a tax intake of R$142.1bn (US$28.7bn) for the month of May. This represents a 69.9% increase on the federal government’s tax take in May 2020, when the economy was just beginning to recover after the first hit of the coronavirus (Covid-19) pandemic. Over the first five months of 2021, the federal government’s tax take totalled R$744.8bn, a 21.2% increase on the same period last year. For both the month of May and the January-May period, the tax take is the best registered since 2000. The Receita Federal attributes this performance to “non-recurrent” factors, notably R$16bn collected through the IRPJ/CSLL corporate income tax since the start of the year. Economy Minister Paulo Guedes hailed the strong tax take as yet another sign that the Brazilian economy is back on track after the recession caused by the pandemic last year. Guedes also said that the government is working on a tax reform, and spoke of his intention of bringing down the corporate income tax.