Increase in IOF to loans, revolving cards and overdrafts
Temporary increase in the tax on financial transactions (IOF), announced by the government on Thursday (16), It will make the tax on credit operations a little more expensive.
This measure extends the interest rate charged by international financial institutions on credit transactions to individuals and businesses from Monday (20), date of entry into force of the measure, until December 31 of this year.
The intention, according to the government, is to raise funds to finance Brazil Help – Extended version of Bolsa Família – More searches related to Fiocruz. Funding for the program in subsequent years is expected to come from other sources yet to be determined.
Credit, foreign exchange, insurance and some investment transactions are currently charged by the IFC in different ways in each.
The temporary increase will only be valid for credit transactions Others follow as they are.
It will affect virtually all credit transactions. For an individual, it is overdraft, personal credit and car financing. For legal entities, it affects working capital and early repayment of receivables, for exampleNicholas Tengas, Chief Economist at the National Association of Credit, Finance and Investment Institutions (Acrefi).
The IOF also bills the credit card, but only when the person delays the bill and falls into the revolving credit – in this case the IOF charged will also be higher.
The mark-up applies to the daily IOF of these transactions, which is calculated on the amount borrowed or on the amount of the debit balance on the card.
For individuals, it goes from the current rate of 0.0082% per day (equivalent to 3% per year) to 0.01118% per day (4.08% per year). For legal entities, it goes from 0.0041% to 0.00559% per day (or 1.5% to 2.04% per year).
0.08% increase in debt
A hypothetical simulation conducted by Nubank showed that for a 30-day personal loan of R $ 1,000, the increase means an additional account of R $ 0.89 in a month.
At the current rate, the amount paid by the daily IOF will be R $ 2.46 in 30 days. With the new higher rate, it will be R $ 3.35. That’s a 36% increase for the IDF.
Looking at the total amount of debt, the increase is 0.08% in one month: the total amount the customer will pay, at the end of the 30 days, will be R $ 1,057.15 with the new IOF, instead of the current R $. 1,056.26.
The amount also includes interest, which varies by institution, and a fixed IOF portion of 0.38% on the amount borrowed (BRL 1,000). This IOF stator does not change either – the daily rate will only increase. In this example, the default interest of 5% per month has been taken into account.