The draft of social security reform includes a consumption savings plan in its articles. anticipate that the 2 percentage points of VAT that is returned to consumers for purchases they pay for with debit cards transferred to the pension accounts of the beneficiaries. It is estimated that with this measure, a person can generate savings for retirement of up to 10%.
The text was prepared by the Executive Power —after receiving a report from the Committee of Experts on Social Security (CESS)—proposes a consumption savings plan that allows the refund of 2 percentage points of VAT for disposals of goods and services made to consumers, provided that purchases are made by debit card or electronic money instruments.
The allocation will also apply to transfers of goods made to members of consumer cooperatives that register electronically, provided that the transaction is not financed in installments.
The article on managing the savings plan explains that debit card issuers will transfer to the Social Security Bank (BPS) the amounts that correspond to the resources, with the respective identification of their beneficiaries on a monthly basis and at no cost.
After receiving the refund, the BPS will distribute the amounts to the administrators of the voluntary and complementary savings accounts of the beneficiaries. These entities will be integrated into automated payment systems and clearing houses.
The chairman of the committee of experts, Rudolph Saldainexplained in an interview with Telemundo that “those 2 percentage points of VAT that the State waives from collection to encourage the use of the cards go to people’s accounts to improve their savings situation.”
He added that a saving of between 5% and 10% is estimated for people who have an intense use of debit cards.
The preliminary bill also clarifies that in cases where the beneficiaries do not have a voluntary and complementary savings account, the administration of the corresponding funds will be assigned to the AFAP of the affiliated party and, in a subsidiary manner, the BPS will open and maintain the account. correspondent.
In addition, it empowers the Executive Branch to establish that people may choose to have the savings transferred to their own account or to that of a third party.
The considerations made by retirees or older than the age determined by the regulations are excluded.
He added that non-resident individuals are not included in the consumption savings plan.
The draft for the social security reform took the Committee of Experts seven months to write before it was delivered to the Executive Power.
The Executive Power presented the preliminary draft to the other members of the coalition last Wednesday and this Friday it did the same with the Broad Front (see previous page).
The growth of debit
Debit card operations had a total of 146 million operations in the second half of 2021, which represented a growth of 17% compared to the previous semester. The amount operated was $171,802 million (about US$3,938 million), according to the latest data published by the BCU.
The fleet of debit cards issued at the end of the second half of 2021 was 3.06 million.
Meanwhile, electronic money cards were 2.7 million. In the second half of 2021, there were 33.2 million operations for $53,094 million (US$1,217 million).
In recent years, a good part of Uruguayans gradually acquired the habit of using the debit card as a means of payment for different day-to-day purchases, and with it, it ceased to be an instrument intended exclusively for withdrawing cash at ATMs.
The Financial Inclusion Law, promoted by the Broad Front government, contemplates the permanent discount of 2 VAT points for sales charged with debit cards or electronic money instruments that work in a similar way to cash payment (food tickets or prepaid cards).
In 2014, during the first year of implementation of the law, the benefit was 4 points, in 2015 it went to 3 points and in 2016 to 2 points. In January 2017, the discount of 4 was returned to, which was in force until March 2020, when the Lacalle Pou government chose to reduce it to 2 points.
