End of Tax Exemption for Debentures Creates Infrastructure Uncertainty

Highway concessionaires and energy companies are monitoring the potential taxation of incentivized debentures. The Ministry of Finance is studying the application of IOF taxes on currently exempt bonds. This measure aims to increase federal revenue without requiring Congressional approval.

The infrastructure sector fears the impact on business plans. Transport and energy projects were structured based on tax exemptions. Executives argue that the levy would increase the cost of capital and require adjustments to toll rates or energy revenues.

Data from Anbima shows that the electric sector led issuances in the first half of the year. There were R$ 65.1 billion in new infrastructure papers during the period. Logistics and sanitation companies also rely on these resources to finance long-term works.

Company representatives are seeking dialogue with the government to preserve ongoing contracts. The goal is to prevent the tax from affecting projects that already have defined schedules. The concern is that the expected profitability in auctions could be compromised by a sudden change in tax rules.

The fiscal uncertainty scenario puts pressure on the financing costs for major works in the country. The change could raise the interest rates demanded by investors to maintain interest in private debt securities.