Single quota or first IPTU installment for the city of Rio expires tomorrow. Is it worth paying upfront?

The beginning of a new year is a time to start over, with many people setting new goals and objectives. But the slips continue and, in the first few months, the classic Urban Property and Land Tax (IPTU) for those who own property or live on rent. In the case of Rio, the single quota or the first installment expires this Tuesday (the 7th).

With the taxes and installment plans or discounts presented by city halls and state governments, the question arises: is it Is it better to pay in cash or in installments? After all, there is another expense typical of the period for those with small children: the purchase of school supplies. In times of high inflation, how to save?

See the experts’ tips:

each one’s reality

In the case of annual taxes, Graziela Fortunato, a specialist in personal finance and professor at the PUC-Rio Business School, says that, first of all, it is necessary to assess whether the family budget allows one to get rid of these slips at once, which which is not the reality of many people in the country today.

Those who saved part of the Christmas bonus for extra expenses at the beginning of the year and are able to settle the obligation in cash should also take into account the discount offered. With the basic interest rate (Selic) at 13.75% per year, investing money and paying installments can result in greater earnings.

In Rio, taxpayers will have until this Monday, the 7th, to pay IPTU in a single installment or the first installment of the tax, which can be divided into up to ten installments. Those who choose to pay in cash will have a 7% discount, the same percentage as in 2022. In São Paulo, the discount is much lower: 3%.

According to Graziela, at the current level of basic interest in the country, the discount on the single IPTU quota must be at least 4.64% to make it advantageous to pay in cash:

– So, it’s good to pay IPTU in Rio at once and take advantage of the discount – said the expert. — But, if the person doesn’t have the money to pay all at once, it’s not worth going into debt for that.

To reach this conclusion, Graziela considered that the taxpayer who has the money to pay in cash can invest it in a more “conservative” Bank Deposit Certificate (CDB) — which pays 100% of the Interbank Deposit Certificate (CDI), close to Selic (13.75% per year) —, like those of more traditional banks, excluding Income Tax from the calculation.

In the budget of former banker Cristiano Machado, 49, any economy makes a difference. He started working as an app driver in the pandemic when he was fired. The house where he lives with his wife and 11-month-old daughter in Cachambi, in the North Zone of Rio, provides security for the family, whose main source of income is his car today. In order to keep the taxes on the goods up to date, he decided to pay in installments, since his monthly expenses are “up to the limit”.— Paying in cash is too heavy. Before, when I worked as a banker, I paid in one go. Now, it’s definitely more difficult, I couldn’t plan anymore. And I think the tax increase this year is bad, now that we are starting to get out of the pandemic suffocation – he complained.

In other capitals

In Belo Horizonte, the discount is 6%, and installments can reach 11 installments. In Salvador, it is also possible to divide it into 11 installments, but the single quota has a 7% discount. The city of Curitiba increased the discount from 4% to 10% this year, with an alternative of ten installments.

Economist Ricardo Macedo, professor of Economics and Finance at Facha, says that, when choosing, the questions on the taxpayer’s radar should be: how much is needed to pay the tax at once? What if this value was in a financial application?

— Depending on the interest rate level, it is worthwhile or not. Today, the remuneration rate we have (in fixed income investments) does not influence so much in the case of IPVA and IPTU. But it’s only worth paying in cash if you have money. The only thing that is not recommended, given the level of interest rates we have today, is financing to honor the spot debt, because then it is not worth it – he reinforced.

Tips for saving on school supplies

Back to school this year will come with steep prices. In 2022, stationery rose by an average of 10%, according to the IBGE, double inflation. In the school season that begins in February, the rise should be even greater, between 20% and 30%, predicts the Brazilian Association of Manufacturers and Importers of School Items. Imports are the majority in the sector. When it comes to saving money, the recommendation is to check what can be reused from the previous year before going to the stores, such as a backpack, pencil case, scissors and ruler. In WhatsApp or Facebook groups and even in initiatives at the schools themselves, parents can check whether other families are selling or exchanging textbooks or other used materials in good condition.

Another way out can be to gather groups of responsible people to buy certain items in bulk. There are stores with more advantageous prices for selling in larger quantities. (Contributed by Letícia Lopes)

*Intern under the supervision of Luciana Rodrigues