When it comes to money and tax obligations, a question that comes up is: “Where do our taxes go?” This is because taxes are embedded in everything we acquire or use. In addition to being present in products, these charges are also included in the electricity bill and fuel, just to mention just two examples. But why does this happen?

In order to guarantee the provision of services and fulfill its obligations to society, the government takes a portion of its wealth from it: taxes. Theoretically, the return that society would have with the amount allocated to taxes would be quality and efficient public services and services, for which it paid in the form of taxes. This is in theory, because, in most cases, what is observed in Brazil is inefficient or even non-existent services. Click here for more information about calculate sales tax.

Official Destination

The main purpose of collecting taxes is basically to make the citizen contribute financially to services he frequently uses, such as health and public transport. The money invested in taxes would then be used to maintain the bus fleets of the country’s public transport system with efficiency and quality, as well as hospitals, health centers and emergency rooms throughout the national territory.

The Allocation of the Tax

According to the Federal Revenue website itself, taxes should be allocated to job creation and social inclusion programs, such as: land reform plan; rural credit for expanding family farming; construction plan for popular housing; sanitation and re-urbanization of degraded areas in cities.

The Other Parts

Another part of the taxes collected, according to the IRS, should be directed to the construction and recovery of roads; in investments in infrastructure; construction of ports and airports; incentives for agricultural and industrial production, in public security; stimulating scientific research; the development of science and technology; culture and sport, and the defense of the environment.

In a Nutshell

In short, all taxes go to a single account, everything collected is added up as government revenue and after dividing the values ​​between the Union, States and Municipalities, as established in the Federal Constitution, there is no longer a distinction of values ​​that are from IPVA or IRPF, for example. All of this comes in as a recipe for the government, which must use these amounts in accordance with what is established in the annual budget, in the multi-annual plan and in the budgetary guidelines.


The money we use to pay taxes is used directly by the Federal Government. A considerable part of them returns to the States and municipalities to be applied in their administrations. In total, there are more than 80 taxes, fees and contributions in the country. There are so many, that we list below the main taxes, separately by the responsible unit: Union taxes, those of the States and taxes of the Municipalities.

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