Economy

Brazil's project for a new post office framework gets to National Congress

The proposal enables the privatization of Correios, the Brazilian Postal Service

Photo: Marcelo Camargo/Agência Brasil
  • With the transformation into a mixed-capital company, even before its privatization, state-owned Correios will no longer have the tax immunity that it currently has;
  • According to Valor, President Jair Bolsonaro went to the National Congress to deliver the project.

The bill for the creation of a new legal framework for postal services in Brazil reached Brazilian Congress last week, in yet another attempt by the Jair Bolsonaro‘s government to signal to the market that the privatization agenda for Correios is maintained, reported Valor Econômico.

The proposal makes it possible the privatization for Correios, the Brazilian Postal Service. According to Valor Econômico, the new bill proposes that Correios would be transformed into a mixed-capital company and would be renamed Correios do Brasil.

READ ALSO: Brazil’s Bolsonaro says resistance to privatization can be overcome with Congressional election

With the transformation into a mixed-capital company, even before its privatization, state-owned Correios will no longer have the tax immunity that it currently has.

READ ALSO: The privatization model for Correios, the Brazilian Postal Service, will be decided on 2020

According to Valor, President Jair Bolsonaro went to the National Congress to deliver the project. Technical and economic studies for the privatization of Correios have already been contracted by Brazil’s National Bank for Economic and Social Development, a development bank structured as a federal public company associated with the Ministry of Development, Industry, and Trade of Brazil.

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