- Cooking gas: refund of 100% of CBS (federal tax) and 20% of IBS (state and municipal tax)
- Electricity, water and sewage: refund of 50% of CBS and 20% of IBS.
- Other products and services consumed: refund of 20% of CBS and 20% of IBS. The refund will be valid for all types of consumption, except for products subject to Selective Tax, such as cigarettes and alcoholic beverages and soft drinks. To be entitled to a refund, the taxpayer must link their CPF to the purchase.
The 20% IBS discount percentage was agreed with states and municipalities and may increase. “They were the ones who asked for it to be 20%, so they could have the autonomy to, by state law, eventually give a higher value,” said Bernard Appy, extraordinary secretary for Tax Reform at the Ministry of Finance.
How will the return be made?
In the case of electricity, water and sewage and piped gas bills, the tax discount will occur on the bill itself. The bill will detail the amount of the bill, the tax due and then the discount to which that user is entitled.
In the case of other consumption there is more than one possibility. The taxpayer may receive a subsequent credit or the tax discount may occur at the time of purchase, if there are operational conditions for this.
In order to have a discount at the cash register, it will be necessary to have a system that allows the discount to occur both in large chains and in small businesses. “We don’t want it to be something that only the big ones will benefit from,” said Orair.
