December 15, 2016 / 1:11 PM / 2 years ago

Cielo could see profit hurt by Brazil tax hike

SAO PAULO, Dec 15 (Reuters) - Cielo SA could see profit slightly suffering with a Brazilian Congress decision to raise social security taxes on certain segments that will take effect at the start of 2018, Chief Executive Officer Clovis Pogetti said on Thursday.

Analyst estimates pointing that every 1 percentage-point increase in the tax rate for the ISS levy could slash between 1 percent to 2 percent of Cielo’s annual profit “make sense,” Pogetti and other executives said at an annual investor meeting.

Cielo is Brazil’s largest card payment processor.

Reporting by Aluísio Alves; Writing by Guillermo Parra-Bernal

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