Our lawyer, Julia Dias Gonçalves, had an article published on the Folha de S.Paulo blog “Que imposto é esse?” (What kind of tax is this?), about the approval of the tax reform regulation bill, which provides more details about “cashback”.

It is nothing more than the return of the taxes that will be levied on consumption, the IBS and CBS, to low-income families in a personalized way.

The text discusses the real effectiveness of personalizing consumption taxes. “After all, cashback taxation has an admirable premise as a social policy to mitigate regressivity.

However, the way it works is still merely an idea permeated with questions, which require more details and budgetary information, so that this return does not imply the indirect passing on of this cost to other taxpayers or, even, the unfeasibility of its practical operation.”

Read in full: https://lnkd.in/dvggE4wZ