Brazil's tax revenue hits record high for January

* Brazil posts record tax revenue in January
* Strong result due to industrial output, higher sales

BRASILIA, Feb 23 (Reuters) - Brazil posted record tax collection for January on the back of healthy industrial production and retail sales, the federal tax authority said on Wednesday.
Tax revenue in January, adjusted for inflation, jumped to 91.1 billion reais ($54.3 billion) an increase of 15.3 percent from a year earlier. Tax revenue in December totaled 90.9 billion reais.
Latin America's largest economy is expected to have grown more than 7 percent last year.
The tax authority attributed December's strong performance to strong industrial output compared to the previous year, increased retail sales as well as a rise in aggregate wages.
Brazil's public accounts deteriorated significantly in 2010 as the government increased spending ahead of October's presidential elections.
The country missed its main budget target with a consolidated primary surplus BRPSPS=ECI in the 12 months through December of 2.78 percent of gross domestic product, well below the goal of 3.1 percent of GDP for the year. For more see [ID:nN31206720].
The January primary surplus figure is due to be announced on Feb. 25.
The administration of the new president, Dilma Rousseff, announced budget cuts earlier this month of 50 billion reais in an effort to meet its budget target and help contain rising consumer prices. [ID:nN09134882]
Last month the tax authority said it expected an increase of 10 percent in tax revenue for 2011, not adjusted for inflation. ($1=1.675) (Reporting by Isabel Versiani; Writing by Raymond Colitt; Editing by Padraic Cassidy)
Brazil's tax revenue hits record high for January

Wed Feb 23, 2011 2:44pm EST