Strengths and limits of cashback and supercashback

The implementation plan for the so-called “cashback“, That is the mechanism for refunding a percentage of the expenditure incurred by means of debit cards, credit cards and any other payment instruments traced that were included in the perimeter.

Pending the launch of the implementing decree that will formalize the new discipline, a first outline comes from the advances that were given by the President of the Council of Ministers, Giuseppe Conte, a firm supporter of a measure that he believes could have significant impacts on the payment habits of Italians, with the aim of combating the undeclared and consequent emergence of the tax base and increase in revenue for the Treasury.

How cashback works

The tools deployed should be substantially two: the “real cashback” and a sort of “supercashback” reserved, as a real reward, for the 100,000 taxpayers who will turn out to be those who, in the reference period, will have made the highest number of transactions with traceable payment instruments provided for in the implementing decree. As for the “cashback”, it will be a 10% rebate of the expense paid by debit card, credit card or other traceable payment instruments provided for in the implementing decree.

The 10% refund to the taxpayer will be on a six-monthly basis, with a maximum ceiling of 3,000 euros, equal to 1,500 euros per semester. However, be careful that, in order to avoid that three or four transactions of a significant amount may be enough to reach the maximum limits of usable benefits, the condition of carrying out, in the semester, a minimum number of traced expenses (apparently they must be at least fifty).

The super cashback

As for the “super-cashback”, The logic should be that of a real“ competition ”: the amount of expenses will not count, but only and exclusively the number of transactions. The first 100,000 taxpayers by number of transactions, in the reference semester, will “win” 3,000 euros each.

Both the forecast of the minimum number of 50 transactions as part of the “cashback”, and the very forecast of a “super-cashback” aimed at “rewarding” the 100,000 taxpayers who carry out the greatest number of transactions with tracked payments obviously respond to the purpose of encouraging the use of ATMs and credit cards (and other payment instruments that will be provided for by the implementing decree) precisely in everyday purchases of everyday life.

The real potential of a “cashback” at 10% semiannual, in bringing out the submerged in relation to transactions where the seller or lender can make himself available to “discount” ready cash a VAT at 22%, seems frankly limited.

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