Brazil's Tax Strike Stalls Revenue Efforts Amid Wage Dispute

A strike by Brazil's federal tax agency over wage demands is delaying government revenue efforts. The National Union of Tax Auditors claims 15 billion reais are pending due to the strike. Despite a bonus scheme introduced last year, negotiations remain stalled, affecting fiscal policies and economic outlook.

A strike by Brazil's federal tax agency is hindering government revenue generation, according to the National Union of Tax Auditors (Sindifisco Nacional). With approximately 15 billion reais ($2.6 billion) pending from last year, the union blames unresolved wage disputes for the delay in tax settlement collections.

The union has been advocating for wage adjustments to reflect cumulative inflation since 2016. In response, the Management Ministry introduced a bonus scheme, raising total monthly compensation for senior positions. However, further negotiations appear unlikely, as the ministry claims an agreement was already reached last year.

President Luiz Inacio Lula da Silva's administration, aiming to enhance public finances, has projected significant tax settlement revenues in this year's budget. However, skepticism remains due to past shortfalls and external economic risks. Tax auditors express a readiness to return to work, urging the Finance and Management Ministries to address wage recovery negotiations.

(With inputs from agencies.)