New incentives for rail investment projects
09 Aug 2023
On 9 August 2023, the Economic Policy Council of Brazil, Confaz, approved a proposal from the Ministry of Transport to grant an exemption from the ICMS tax for railway projects.
The ICMS tax ( Imposto sobre Circulação de Mercadorias e Serviços) or "Tax on Circulation of Goods and Services" is a value-added tax that is levied on the movement of goods and the provision of services in Brazil.
According to the Ministry, this tax exemption is expected to boost demand for rolling stock and engineering works, leading to a potential 15% reduction in the costs associated with undertaking railway projects.
It will take effect from January 1, 2024, until December 31, 2032
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Not industry specific (SDG)
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Services (Transportation and storage)
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Sources:
