By means of an analysis of the tax revenue performance within the period 1989-93, this paper aims to provide further insights into the relation between inflation and fiscal structure in Brazil, stressing issues of distribution and equity. This paper gives: (a) a brief summary of the Brazilian fiscal system under the 1988 Constitution; (b) a description of the federal experience in sharing revenues; (c) a comment on the effects of inflation on revenues and budgetary results; (d) an overview of the tax performance in the period 1988/93; (f) a review of equity and allocative effects.