The informal road freight transport market in Brazil results in an estimated annual tax evasion of R$ 32 billion, according to a recently released study.
The informal road freight transport market in Brazil accounts for approximately 43% of the total market and is responsible for an estimated tax evasion of R$ 32 billion annually, which includes federal, state, municipal taxes, and social security contributions. This alarming statistic was revealed in a study entitled 'Economic and Fiscal Impacts of Informality in Freight Payment in Brazil,' conducted by GO Associados at the request of the Ampef (Association of Electronic Freight Payment Administrators).
The total market for road freight transport in Brazil is estimated to be R$ 818 billion, comprised of R$ 466.9 billion from the formal segment and R$ 341.8 billion from the informal sector. The research highlights that the estimation of tax evasion was derived from diesel consumption data and income reported to the Federal Revenue Service. This underscores the significant impact of the informal freight sector on the national economy and the need for regulatory measures to enhance compliance among freight transporters.
Moreover, the road transport mode represents over half of cargo transportation in Brazil, as indicated by a survey from the consultancy Ilos. The increasing trend of formalizing truck driver occupations is a relatively recent phenomenon, suggesting there may be further opportunities for integrating informal operators into the formal economy. Initiatives aimed at reducing tax evasion could provide substantial fiscal benefits to the nation, potentially funding essential public services and infrastructure improvements.
