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Politics and Governance

"Nota Fiscal Paulista", NFP (Brazil)

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Joana Naritomi


Working Paper





"Nota Fiscal Paulista" (NFP) program, created by the government of the state, in order to reduce tax evasion among retailers and to foster a culture of tax compliance. Consisted of: (i) tax rebate system (on average, 0.8% of the total value of the purchase) through electronic submission of receipts, with rewards that could be directly deposited into the consumer’s bank account, used to pay other state taxes or transferred to another person with an online account or to a charity; (ii) online system to file complaints about the way the establishment issued receipts; (iii) lottery, such that for every 50 dollars a consumer spends in NFP receipts per month, she receives one lottery ticket (expected value of the lottery ticket is 0.2% of the total purchase, but some prizes are very high); (iv) penalties to establishments that do not issue receipts correctly and potentially more comprehensive audits by the tax authority - under tax law, establishments can pay up to 100% of the evaded tax, and there are additional penalties for misreporting documents and receipts

Unit of Analysis

Establishments classified as retail or wholesale (approximately 50%) in the state of Sao Paulo





Outcome Methodology Effect
Logarithm of reported revenue among retail establishments, up to 2 years after the intervention started Difference-in-differences Approach in Observational Study (Average Intention-to-Treat on Treated Parameter) Magnitude: 0.244, Standard error: 0.0664

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