Government studies cashback from food tax and basic food basket

In an interview with the program The Voice of Brazilyes Brazil Communication Company (EBC)the Extraordinary Secretary for Tax Reform at the Ministry of Finance, Bernard Appy, said that the proposal is under construction with the priority of favoring low-income families, such as those included in social programs.

“The idea of cashback it is a tax refund system for consumers. Whatever the design of cashback will favor lower-income families over higher-income families,” he said.

One of the proposals analyzed, according to the secretary, is to return the amount at the cashier’s mouth. The consumer would receive, for example, a discount when paying for the product.

“We are studying several international experiences, including the possibility of doing it directly at the checkout counter. When making the payment, you would already have the cashback”, reported Appy.

Manaus Free Zone

Bernard Appy also said that the Manaus Free Trade Zone will be preserved from the changes foreseen in the tax reform.

“The government intends to review tax exemptions, but the Free Zone will be preserved, as it is very important for the state of Amazonas. What the government is discussing is a very slow transition to a new development model for the region, one that better explores regional vocations. A transition that will not generate any turbulence, any insecurity for the companies that are already installed”, he explained.

The government’s expectation is that the Chamber of Deputies will approve the tax reform in process by mid-July, and in the Senate, in the following months.