Government announces package to leverage the capital market

On June 16, the Minister of Finance Guido Mantega announced two new measures aimed to encourage the emission of shares  by medium-size companies. The first one is related to the exemption of the tax on capital gains for investments in companies with revenues of up to $700 million Reais. Despite the announcement, the measure will be formalized only later.
The second measure refers to the simplification of the way this same tax is assessed when it comes to individuals. The minister announced the creation of a group that will be working together with BMF Bovespa on a formula able to facilitate this calculation and remove the lack of incentive to investment on shares. The group is expected to conclude the result within 90 days.
BMF Bovespa has been supporting both measures with a view to boosting the capital market. Amec has been following these debates through Grupo Interagentes and BMF Bovespa’s Listing Advisory Committee.