Government studies zeroing IOF on BNDES operations – 03/29/2023 – Panel SA

The MDIC (Ministry of Development, Industry, Commerce and Services) and the BNDES are finalizing the terms of a decree to eliminate the levy of the IOF (tax on financial operations) on the bank’s financing.

The initiative is part of the set of measures that the president of the BNDES, Aloizio Mercadante, intends to adopt to expand the institution’s presence. It represents tax breaks for the government, but is seen as a way to make credit cheaper.

As the decree is interministerial, it still needs to go through the Treasury, before proceeding to the approval of the Presidency of the Republic.

Between 2018 and 2022, the BNDES collected an average of BRL 330 million of IOF per year. The estimate is that this is the impact generated by the alteration of the line, that is, this IOF payment would be transformed into credit, according to the defenders of the measure in the productive sector.

The assessment is that the new measure corrects the previous distortion, when credits granted by the BNDES began to be levied with IOF from 2015, while other types of support for investments of the same nature remained exempt, such as credits granted by regional public banks with resources from constitutional funds.

In addition to the BNDES negotiations for the reduction of the IOF with the MDIC, talks in the government are also progressing around another proposal by Mercadante to reduce the payment of dividends to the Treasury, in an attempt to increase the bank’s credit concession capacity.

Today, BNDES pays up to 60% of profits to shareholders. BB, in turn, pays 40% to its shareholders, including the Union as the majority shareholder.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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