Rio de Janeiro reports rising tax revenue and municipal transfers

The Rio de Janeiro state government has reported significant growth in tax revenue, driven by increased enforcement and combatting tax evasion. State Secretary of Finance Guilherme Mercês stated that ICMS revenue from fuels and derivatives increased by 40% compared to the same period last year. Overall ICMS collection grew by 18% in the first semester, outpacing the national average of 7%, with projections suggesting a potential 23% increase in August.

To achieve these results without raising tax rates, the state intensified fiscal inspections, resulting in a 500% increase in seizures at fiscal barriers. Additionally, the government has renewed over 60 expired tax benefits to improve the business environment and is auditing all public contracts.

In a separate distribution of funds, the state government transferred R$ 703 million to the 92 municipalities of Rio de Janeiro during the week of August 10 to 14. These funds, derived from IPI, ICMS, and IPVA collections, are part of a larger monthly disbursement that totaled nearly R$ 1 billion in August. Since the beginning of the year, municipalities have received a cumulative total of R$ 14.6 billion through various state and federal transfers.