In Cabo Frio, located in the Lagoons Region of Brazil, the newly instituted garbage collection tax has elicited significant concerns from both residents and business owners regarding the fees outlined in this year’s tax documents. This tax, which was established by a municipal law passed in 2025, began to be enforced this year and appears alongside the property tax (IPTU). The revenue from this tax is intended to cover the costs associated with the collection, transportation, treatment, and final disposal of residential and commercial waste.

The municipality has stated that families registered in the CadÚnico program are exempt from this tax, with approximately 40,000 families qualifying for this exemption. Additionally, non-profit organizations, religious temples, and properties given to the government are also exempt, provided they meet specific legal requirements. The city's administration claims that over half of the population will not have to pay the fee and insists that among those who will, most will have to pay less than R$ 40 per month, alleviating concerns about the financial burden on lower-income families.

As the collection of this tax unfolds, residents and business owners have begun to question the legitimacy and fairness of the amounts being charged, leading to legal challenges against the municipal government. This situation reflects broader issues concerning municipal taxation and waste management in Brazil, indicating potential disputes over fiscal policies and their impacts on community members, especially in economically vulnerable areas during times of increased financial strain.