Brazil's Congress advances recycling incentives with cashback and tax benefits

The Chamber of Deputies approved the Programa Recicla e Cash, a cashback scheme that converts the weight of recyclable waste into points that can be used for discounts on electricity and water bills. Consumers must register on a digital platform, deliver recyclables to accredited collection points and the material is weighed to generate credit. The program will be managed by the Ministry of the Environment in partnership with the energy and water regulators (ANEEL and ANA), with future regulations to set credit values and eligibility criteria.

The proposal received support from the National Confederation of Commerce (CNC), which praised the environmental benefits but called for detailed regulation to preserve the financial balance of utilities. In parallel, the Chamber also passed a measure making permanent the tax incentive for companies that invest in recycling projects, raising the allowable income‑tax deduction from 1 % to 4 % and removing the previous expiry date. The permanent incentive aims to provide legal certainty for firms and cooperatives in the recycling sector, encouraging further investment in the circular economy.