Ministerio do Turismo.

 

Maracanã Stadium - project for the 2014 World Cup

The contracts signed for the achievement of the 2014 World Cup in Brazil anticipate complete tax exemption, even Tax Income on event profits, for the Federation Internationale de Football Association (FIFA) and for companies that Fifa indicates and that are domiciled abroad.

The information was given by the chief of the Divisão de Estudos Tributários da Receita (Department of Tax Revenue Studies), Augusto da Cunha, that took part of the public hearing in the Committee of Financial Oversight and Control.

The Revenue representative said that projects that concede tax exemption regarding the 2014 World Cup must soon be passed by the Congress. He said that technicians tried to prevent problems such as money laundering.

However, Augusto da Cunha said that the tax considerations were not detailed when signing the contracts: “At that time it was done hastily. It would be necessary to check if certain limits were exceeded.”

Germany
According to the Chairman, Deputy Silvio Torres (PSDB-SP), Fifa profited 800 million euro with 2006 World Cup in Germany.

Revenue Technicians settled that they will contact the organizers of the World Cup in Germany to check if the same exemptions were given in 2006. According to them, the country has continued to withhold tax and collect tax on consumption. In Brazil, one of the possibilities is the rating of 10% in the tickets sale and accommodations services.

Concern
For Deputy Silvio Torres, the tax question shall be a greater concern among the representatives. “The Revenue and Ministry of Finance are not sure about these agreements. If these agreements are really followed, they will leave many doubts about what interests they meet and who will be specifically benefited. The Congress involvement on this debate is essential”, he warned.

According to the director of Social Programs of the Ministry of Planning, Mauro Nascimento, the World Cup Local Organizing Committee ordered a study which estimates R$65 million will be generated due to the event. Besides, tourism should increase in 20% between 2009 and 2014. The estimate is that Brazil will receive 600 thousand people, which will stay at the country for about 15 days. Each one of the tourists shall spent 5.5 thousand dollars.

Reporting – Sílvia Mugnatto/The Chamber of Deputies' Radio Station
Edition - João Pitella Junior
Translation - Grupo Solucion-SP Language/Vanessa Aylanak