Reidi will provide incentives for expanding the Paulista and North rail networks

The Special Infrastructure Development Incentive Regime (Reidi in Portuguese), a tax benefit aimed at facilitating the implementation of structural projects in the country, will be used to expand the operational capacity of the Rumo Malha Paulista (RMP) and Rumo Malha Norte (RMN) rail networks. The projects were granted authorization by the Federal Government to participate in the Reidi program, as reported in the Brazilian Federal Register on Friday the 14th.

The Patio Paratinga (ZPT), which is part of Malha Paulista, will be expanded on the Paratinga-Perequê stretch, located between Km 108.8 and Km 111.4 in São Paulo. The plan is to build two new 2.5-kilometer lines there to serve trains bound for the Port of Santos as well as other developments in the municipality of São Vicente. The project is expected to receive BRL 59,977,383.32 in investments, resulting in a BRL 5,547,907.96 exoneration.

The project in Malha Norte will acquire up to 45 locomotives and 2,142 wagons in the state of Mato Grosso, allowing for efficient transportation of grains, bran, sugar, and fertilizers. The investment is valued at R$1,929,612,870.00, leading to a R$178,489,190.47 tax break.

Reidi

The Ministry of Infrastructure approved the implementation of 10 rail projects under tax incentive programs in 2021. Seven proposals were included in Reidi, totaling BRL 12.8 billion in investment and BRL 700 million in relief. In addition, three projects qualified for R$ 3.79 billion in incentivized debentures over the next two years.

Created by Federal Law No. 11,488, Reidi aims to grant tax exemptions to the implementation of infrastructure projects. The tax incentive consists of the suspension of the levy of contributions to PIS (1.65%) and Cofins (7.6%) on the ensuing revenues, which are intended for use or incorporation in infrastructure projects.

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