Brazilian government published on Tuesday in the official Gazette a law that establishes a series of exemptions from federal taxes for the FIFA to organize the 2014 World Cup and the Confederations Cup in 2013.
The exemption enters into force on Jan. 1, 2011, and is one FIFA's requirements to hold the World Cup in the country.
According to the law, for the preparation of the event, FIFA does not need to collect taxes on imported goods (IPI), the contribution to Social Security Financing (Cofins) on imported goods and services, and the Contribution to the Programs for Social Integration and Heritage Formation of the Public Servant ( PIS-Pasep) on imports.
However, the exemption for equipment and construction of the stadia to be used for training the teams in the World Cup's 12 host cities was not authorized by Brazil's Ministry of Finance.
The ministry said the exemption would allow "undue expansion of tax incentives to stadia with the purpose to offer support, whose characteristics deviate from the aims and the reasons justifying the granting of benefits."
According to Brazil's Ministry of Sports, the country gains with the Cup will be greater than the tax exemption granted to FIFA.
The Ministry states that the collection of taxes due to the economic movement generated by the event will amount to about 9.5 billion dollars, while the exemption is estimated at about 600 million dollars.
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