Impact of COVID-19 on tax collection on services of any nature in Minas Gerais

Abstract

This study analyzed the effects of the Covid-19 pandemic on the collection of the Tax on Services of Any Nature in the municipalities of Minas Gerais. Using a dynamic panel data model, the analysis considered the reduction in economic activity, deferred payments, and changes in consumption patterns, based on a historical series from 2000 to 2021. The results revealed a significant and negative relationship between the pandemic and ISS revenue, highlighting the impact of the health crisis on municipal revenues and the service sector's capacity to generate resources. The analysis emphasized the main economic and fiscal transformations during the period, providing a comprehensive understanding of the challenges faced by municipalities in Minas Gerais. The study underscores the need for adaptive strategies to mitigate the effects of future crises and promote the financial sustainability of municipal administrations.

Keywords: Covid-19; Tax on Services of Any Nature; Minas Gerais municipalities; municipal taxes.