Tax reform: cashback for low income is guaranteed, but government and parliamentarians are still studying the refund format

According to the PLP, when dealing with water, sewage, electricity and gas bills, the refund of part of the taxes paid must occur at the time of collection from the consumer, that is, on the invoice. When consuming other goods and services, such as purchasing a computer, for example, the text does not inform how the cashback will be credited.

Member of the Tax Reform Study Commission at the Federal Accounting Council (CFC), Fellipe Guerra says that parliamentarians should carefully discuss how cashback will be operationalized.

“The text says that families with a per capita income of up to half a minimum wage are (entitled to cashback) by joining the Single Registry, however, we will need to know how this will be implemented, whether it will be possible for, instead of refunding , the family can receive a discount at the cash register when making a purchase. This point deserves attention from the National Congress”, he states.

Bianca Xavier, professor at FGV Direito Rio, explains that the way in which part of the amount paid in taxes will be returned to low-income consumers will depend on the technological capacity of small entrepreneurs.

“The government is studying the possibility of this (cashback) being directly at the cashier’s mouth. And why does he have this doubt? Because he knows that the big supermarket chains will be able to do this easily, but will that grocery store in Will the corner have the technology to do this? They don’t want to make the low-income discount immediately at the cash register, unless they are sure that the small and large can do it, because otherwise the low-income person will want to buy from us. large supermarkets, where the discount will be available, and I will end up harming the grocery store on the corner”, he points out.

Bianca says that, if it is not feasible to grant the discount at the time of purchase in all establishments, the most likely alternative for the refund is to deposit the amounts into the beneficiaries’ account days after consuming the good or service. “The money that comes out of the payment goes directly to the Management Committee. The Committee will have to send it to the financial agent, which will most likely be Caixa Econômica, and then Caixa will put it on the low-income citizen’s card”, consider.

The complementary bill does not say that the bank responsible for crediting the cashback will be Caixa, but the expert believes that the institution comes out ahead as it already has experience in paying social benefits, such as Bolsa Família — which also targets people low-income people registered with CadÚnico — and for having a greater presence in remote regions.

Cashback percentage and term

In the new consumption tax model, IPI, PIS and Cofins give way to CBS (Contribution on Goods and Services). ICMS and ISS leave the scene for the arrival of IBS (Goods and Services Tax).

According to the text, consumers will receive 100% of CBS and 20% of IBS back when they buy gas cylinders. Regarding the consumption of electricity, water, sewage and natural gas, there will be a refund of 50% of the CBS and 20% of the IBS. For other goods and services, the cashback will be 20% of the CBS and IBS value.

The Union will be able to increase the CBS cashback percentages, while states and municipalities will be able to do the same with IBS. According to Fellipe Guerra, this is another point that could be improved during the PLP’s progress in the National Congress.

“We have defined that only cooking gas gives the right to a refund of 100% of CBS and 20% of IBS. Will electricity, water and sewage, which are scheduled to give a cashback of 50% of CBS, Couldn’t they be 100%, since they are extremely necessary?” he asks.

The bill establishes that the government must make the amounts available to the financial agent within 15 days after the purchase of the good or service. The financial agent, in turn, will have 10 days to transfer the cashback to the beneficiaries.

Find out how the cashback proposed by the tax reform will work