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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)