Brazilians work twice as hard to pay taxes

by time news

2023-06-11 14:00:04

Brazilians work nearly twice as hard to pay taxes in 2023 than they did in the 1980s and 1970s.

Data were revealed during a study by the Brazilian Institute of Planning and Taxation (IBPT), which pointed out that the tax payer worked until May 27 just to settle tax obligations, on average, 147 days.

This number is lower than that recorded in the previous year, which corresponded to 149 days and has been decreasing since 2019, when the indicator ended a four-year period at its peak, registering 153 days of the year just to pay taxes.

In 2020 and 2021, the total number of days was also 149 and was influenced, according to the IBPT, by the economic effects of the Covid-19 pandemic.

According to data from the Organization for Economic Cooperation and Development (OECD), Brazil is behind countries such as:

  • Argentina;
  • Uruguay;
  • Mexico;
  • Chile;
  • Japan;
  • Switzerland;
  • South Korea;
  • USA.

On the other hand, it beats nations like:

  • Germany;
  • Italy;
  • Norway;
  • Denmark.

Thus, in the latter, 164 working days are needed just to pay taxes.

The indicator concerns only the tax burden for individuals and does not consider the time spent with the complexity of the system, something that the government intends to address through the tax reform, which is being discussed in the National Congress.

The Brazilian tax burden was 33.71% in 2022, according to the National Treasury. Of the total, 22.78% are federal taxes, 8.59% state, and 2.34% municipal.

Source: Poder360

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