Brazil's tax burden drops for the 1st time since 2006

Brazil's tax/GDP ratio fell from 34.41 percent in 2008 to 33.58 percent in 2009, the first fall of the nation's tax burden since 2006, the government said Thursday.

The dip can be attributed to the global financial crisis, which led to a 2.61-percent fall in the tax collection and a 0.2-percent contraction in the GDP figures in 2009, according to the Federal Revenues Secretariat.

It noted that the government cut taxes for several times last year, aimed at maintaining the consumption levels higher and minimizing the crisis' effects in the Brazilian economy.

In 2009, the federal taxes accounted for 23.45 percent of the GDP, down from 24.12 percent in 2008. The state taxes accounted for 8.59 percent of the GDP, from 8.75 percent in 2008, and the municipal taxes, for 1.54 percent of the GDP, roughly the same figures registered in 2008.

Despite the fall, Brazil's tax burden remained the highest among emerging economies, and surpassed some developed economies' as well.

The country's tax burden exceeds the figures registered in Mexico (20 percent of the GDP), Argentina (29 percent), United States (27 percent), and Spain (32 percent).

Source:Xinhua