The Federal Revenue Service tax auditors’ strike has now lasted more than 90 days and continues to have a significant impact on government revenue, foreign trade and various production chains in the country.
The shutdown, which began on November 26, 2024, comes at a critical time for the Brazilian economy, as the government seeks to achieve the fiscal goal of zero deficit by 2025.
With the retention of goods at ports and airports and the paralysis of judgments in billion-dollar tax disputes, the mobilization has caused a series of concerns both in the private sector and among public managers.
The category is demanding a pay rise and compliance with agreements signed in previous years, which, according to the auditors, have been ignored by the government.
The lack of effective dialogue and the absence of concrete proposals to resolve the impasse are prolonging the strike, which is increasing the damage and creating uncertainty for both companies and public accounts.
Below, we’ll understand the reasons behind the stoppage, its direct impacts and what can be expected in the coming months.
What motivated the tax auditors’ strike?
The tax auditors of the Federal Revenue Service claim that their salaries have been frozen since 2016, without any increase, while other public service categories have received salary increases in recent years.
This gap, according to the National Union of Federal Revenue Auditors (Sindifisco Nacional), jeopardizes the appreciation of the career and demotivates professionals who play an essential role in tax collection and inspection in the country.
Another point of demand is the lack of implementation of the efficiency bonus, a mechanism promised by the government to compensate for the absence of a salary increase, but which has not yet been regulated.
Sindifisco also points out that the working conditions of auditors have been deteriorating, with budget cuts and lack of investment in the Federal Revenue Service, which compromises the efficiency of the agency.
The strike comes at a sensitive time for the government, whose priority is to balance public accounts. Against a backdrop of weakened revenue, internal economic challenges and external risks, the tax auditors’ strike is yet another obstacle to the country achieving its zero deficit target.
The impasse between the Ministry of Finance and the category is dragging on without any concrete solutions, while the damage is piling up on several fronts.
The impacts and damages of the strike for Brazil
The Federal Revenue Service tax auditors’ strike affects not only tax collection, but also customs operations, the regularity of foreign trade and the processing of tax cases at the Administrative Council for Tax Appeals (Carf).
Companies from various sectors, especially those that depend on importing and exporting goods, are reporting operational difficulties and financial losses. See the main impacts of the stoppage.
1. Fall in tax collection and billions in tax withheld
With the strike underway, tax transactions that were about to be concluded have been suspended or postponed, which has already generated a direct impact of R$ 14,6 billion on federal tax revenues.
This sum represents amounts that have not been collected from the Treasury due to the work stoppage at the Federal Revenue Service. The category plays an essential role in the inspection and collection of taxes, and the lack of auditors working in this process significantly reduces the volume of funds entering the public coffers.
This loss is even more worrying given the government’s commitment to achieve a zero deficit by 2025. The strike, therefore, adds a new layer of complexity to the already difficult task of balancing public accounts, since the government itself depends on the work of tax auditors to ensure efficient collection.
2. Delays in releasing goods and the impact on foreign trade
The strike by the Federal Revenue Service directly affects ports, airports and border crossings, where imported goods are released. With the strike, tax auditors have adopted the so-called standard operation, a type of mobilization that drastically reduces the pace of releases. This means that essential products for industry and commerce are held up, generating delays, extra costs and logistical bottlenecks.
The “Zero Clearance” operationwhich began on February 12, 2025, further aggravated the situation, as auditors stopped releasing goods for a period of 15 days, which increased the damage to importing and exporting companies. It is estimated that this stoppage will have an economic impact of more than R$ 3.5 billionaccording to the Parliamentary Front for the Free Market (FPLM).
Sectors such as the pharmaceutical, automotive and agribusiness industries are among the worst affected. Companies that depend on imported parts to maintain their production lines report difficulties in keeping stocks, while exporters face logistical barriers to sending their products abroad.
3. Carf trials come to a standstill
Another major impact of the strike is the suspension of the activities of the Administrative Council for Tax Appeals (Carf), the body responsible for judging tax disputes between companies and the Federal Revenue Service. Currently, cases amounting to more than R$ 51 billion are at a standstill due to the tax auditors’ strike.
This means that companies awaiting Carf decisions to resolve tax disputes are left in a legal limbo, unable to regularize their situation or contest undue charges. The paralysis of these judgments also harms the financial predictability of the government, which depends on these decisions to guarantee the entry of funds into the public coffers.
Impacts for companies
1. Delays in the release of goods and inputs
Companies that rely on imports of inputs, products and raw materials are facing difficulties due to standard operations and the suspension of customs clearances. This means that cargo that would normally be released quickly is stuck at ports and airports, causing..:
- Shortages in industry and commerce, which are unable to replenish stocks.
- Increased logistics costs, as goods are held for longer.
- Financial losses, especially for sectors that operate with perishable products or high value-added goods.
2. Tax and financial insecurity
The strike also jeopardizes the normal functioning of the Federal Revenue Service, resulting in:
- Delays in the progress of fiscal and tax processes, making it difficult to regularize companies.
- Delays in granting special regimes and tax benefits, affecting the competitiveness of the productive sector.
- Risk of fines and fines, since the stoppage could affect compliance with tax obligations.
3. Suspension of Carf judgments
Since Carf has paralyzed processes, this implies that:
- Companies with tax disputes are unable to resolve their pending issues, jeopardizing financial management.
- Billion-dollar sums that could be returned to the companies’ cash flow are stuck in legal disputes.
- The government also stops collecting amounts that depend on Carf decisions, impacting the national economy.
Outlook for the coming months
So far, there is no forecast for an end to the strike. The federal government has not presented a concrete proposal that meets the demands of the category, and the impasse continues with no solution in sight. The Ministry of Finance, for its part, faces the challenge of reconciling the demands of the tax auditors with its commitment to keeping the public accounts balanced, and has requested an extension of the deadline until March 7, 2025 to respond to the requests.
Meanwhile, companies, productive sectors and public managers continue to press for a quick resolution to prevent the damage from accumulating further. The prolongation of the strike could lead to new emergency measures on the part of the government, but so far there is no clear plan to mitigate the effects of the strike.
What can companies do to minimize the impacts?
To mitigate these effects, it is recommended that companies anticipate their import processes, avoiding future bottlenecks. In addition, legal measures can be considered to ensure that customs procedures are in order.
One alternative is to file a writ of mandamus, guaranteeing compliance with the legal deadlines for customs clearance. This measure can reduce the impact of the stoppage, ensuring the continuity of operations and minimizing operational risks.
Combining these strategies – anticipating operations and legal measures – can be fundamental to protecting the businesses of the companies most affected during this critical period.
Conclusion
As we’ve seen, the Federal Revenue Service tax auditors’ strike has already had a billion-dollar impact on the economy, affecting tax collection, foreign trade and the processing of tax disputes. The strike comes at a delicate time for the government, which needs to balance the public accounts while facing a scenario of economic slowdown.
While there is no concrete solution to the impasse, companies and productive sectors continue to suffer from the effects of the strike. If the strike goes on for longer, the damage could be even greater, increasing uncertainty in the Brazilian economic scenario.
Doubts and questions?
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