Brazilian flats steelmaker Usiminas said a recent tax policy change should have a positive impact on its earnings. Brazil’s highest court, the Brazilian Supreme Court (STF), ruled that the ICMS tax, which is due on inter-state transactions, will no longer be included in the calculation of the PIS and Cofins taxes.
The tax policy change will result in a positive effect of BRL 2.4 billion ($476.4 million) for the steelmaker’s earnings. Usiminas also said that the effect of such policy change on the company’s EBITDA will be about BRL 1.5 billion ($298.2 million).
USD = BRL 5.03