Tax burden fell to 32.4% of GDP in 2023, Treasury estimates

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The fall in the tax burden was 0.64 percentage points of GDP last year, according to an estimate from the National Treasury. Economic growth in 2023 helped the indicator decline. The tax burden – that is, the proportion between taxes paid and the country’s total wealth – totaled 32.44% of the Gross Domestic Product (GDP) in 2023, according to an estimate released this Thursday (28) by the National Treasury Secretariat . Last year, revenue from the Union, states and municipalities totaled R$3.52 trillion, while GDP in current values ​​totaled R$10.85 trillion. According to the Treasury, the tax burden fell by 0.64 percentage points of GDP compared to the value recorded in 2022 – which was 33.07% of GDP. Last year, the indicator reached its lowest level since 2020, when it totaled 31.08% of GDP, according to calculations by the National Treasury. The fall in the tax burden was favored by the growth of the economy, which increased 2.9% in 2023. The value of the tax burden includes taxes paid to the federal government, states and municipalities. The division is as follows: the tax burden for the Union alone totaled 21.99% of GDP last year, against 22.41% of GDP in 2022; in the case of states, the tax burden estimated by the National Treasury totaled 8.12% of GDP in 2023, compared to 8.48% of GDP in the previous year; the municipalities, in turn, had their burden estimated at 2.32% of GDP in 2023, against 2.18% of GDP in the previous year. International comparison National Treasury figures show that the Brazilian tax burden, last year, came close to the values ​​of the Organization for Economic Cooperation and Development (OECD), formed by more developed nations, and was well above the Latin American average. International comparison of the tax burden Reproduction of a study by the National Treasury Structure of the tax burden The data shows that the Brazilian tax burden was mainly concentrated on taxes on goods and services (consumption) in the last year, followed by income taxation. Structure of the Brazilian tax burden Reproduction of a study by the National Treasury Determination of the CGU According to the National Treasury, the estimate is made due to a determination by the General Comptroller of the Union (CGU), and follows the standard of the Public Finance Statistics Manual 2014 from the International Monetary Fund (IMF). The institution explained that the CGU needs the data to use in the reporting of the President of the Republic, which will be analyzed by the Federal Audit Court (TCU) and the National Congress. The National Treasury remembers, however, that the Brazilian Federal Revenue Secretariat is the area responsible for publishing official data on the tax burden in Brazil. This document is generally only released in the second half of this year.

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