Federal District Government Authorizes Tax Payment by Card

RIO DE JANEIRO, BRAZIL – Governor Ibaneis Rocha has signed a decree including credit and debit cards among local tax payment methods. The measure is yet another attempt by the Secretariat of Finance, Budget, Planning, and Management (SEFP) to increase tax collection.

The Federal District Government (GDF) has approximately US$125 million (R$500 million) to collect in overdue taxes.

The news will be published Monday, July 22nd, in the Federal District Official Gazette (DODF), with authorization for the accreditation of financial institutions and operators.

“The goal is to make people’s lives easier by enabling the population to pay off their debts in a fast and safe way. Another advantage for the citizen is to prevent arrears in payment, as well as not compromising the total monthly income, since they may pay the card in installments, which ensures some financial relief,” said the secretary of the portfolio, André Clemente.

According to the state government, the measure is backed by Federal Law No. 12,865 of 2013.

Clemente explains that when paying in installments by credit card, the GDF will receive the total amount of the debt in one go, with no risk of loss should the debtor withdraw from the transaction.

“It is worth noting that the measure will not result in an increase in expenditure, given that the technical cooperation agreements and technical-operational partnerships will be signed without burden to the Federal District,” he stressed.

Installments

However, the ease of payment — as is the case with installments — must be regulated by each accredited financial operator, without the mediation of the state government, thus preserving the relationship between client and the financial institution, which can still result in the known benefits of punctual payments.

“The District Public Treasury will also be favored by the initiative since the measure reduces bureaucracy and simplifies collection.”

According to the Secretary of Finance, the total amount of default on Motor Vehicle Licensing Tax (IPVA) is US$78 million (R$315.3 million), owed by nearly 440,000 defaulters.

In the case of the Urban Property Tax (IPTU), the amount reaches US$35 million (R$142.2 million).

The GDF still expects to receive another US$6 million (R$23.4 million) in arrears related to the Public Cleaning Charge (TLP).