Tax accounts for 35 percent of Brazil's GDP in 2007

RIO DE JANEIRO, Dec. 12 (Chinese media) -- Tax collections in Brazil accounted for more than 35.3 percent of the country's gross domestic product (GDP) in 2007, up from 34.04 percent in 2006, theSecretariat of Federal Revenue said Friday.

The total tax collected by the local, state and federal governments jumped from 794 million reais (333.5 million U.S. dollars) in 2006 to 903 million reais (379.3 million dollars)in 2007, the secretariat said.

The federal tax amounted to 24.7 percent of Brazil's GDP last year, up from 23.6 percent in 2006. The state tax was 9 percent ofthe GDP, the same as in 2006 while taxes collected by local governments rose slightly from 1.5 percent of the GDP in 2006 to 1.6 percent in 2007.

The secretariat said the increase was due to the sound performance of corporations that earned more profits because of favorable economic conditions during the period.

The biggest increases were registered with income tax, workers' social security contribution paid by employers, and the tax over net profit, the secretariat said.