Kassab releases R$ 420 million for Corinthians.
Resources will be used in the construction of the Itaquero stadium, a possible venue for the World Cup.
The São Paulo City Hall will grant a package of R$ 420 million in tax incentives for Corinthians to build its stadium in Itaquera, in the eastern zone of São Paulo. The club will receive "development incentive certificates" worth R$ 50 each. This is what is foreseen in a project by Mayor Gilberto Kassab (independent) sent to the City Council this Friday.
These certificates will allow the club to offset taxes such as ISS (Service Tax) and IPTU (Property Tax). Kassab authorized the Municipal Secretariat of Economic Development to open an additional credit of R$ 50 million for the issuance of the certificates. The amount of the tax break granted to Corinthians is the largest in the history of the City Hall.
The bill will begin its legislative process on Tuesday, when it will be read in plenary session. Since the mayor has the support of 32 of the 55 council members, the proposal should be approved without difficulty by the end of this month. The bill needs to pass two votes with the support of at least 28 council members.
According to the proposal, the club will not have to pay any taxes when acquiring land adjacent to the future stadium, for example. The purchase of equipment to be used in the construction will also be exempt from the 5% tax levied on the total value of the product.