BM&FBovespa sees Brazil to suffer if interest on equity incentive scrapped

viernes 14 de agosto de 2015 09:52 GYT

SAO PAULO Aug 14 (Reuters) - Brazil's government plans to gradually eliminate tax-deductible interest on equity payments could inflict damage to the nation's capital markets, the top executive at boruse operator BM&FBovespa SA said on Friday.

The incentives, known as JCP in Brazil, are a sort of dividend payment that are treated as an expense in balance sheet, reducing taxable income. In the opinion of BM&FBovespa Chief Executive Officer Edemir Pinto, an eventual scrapping of JCP "would have an impact on the market. (Reporting by Aluísio Alves; Writing by Guillermo Parra-Bernal Editing by W Simon)