Incentive Law funds Olympic and Paralympic sports up to 2016
28/03/2011 04:45 - Portal Brasil
In 2011, Brazil's Sports Ministry expects to raise at least R$ 250 million (about US$ 150 million) in new investments through the Sports Incentive Law. The Sports Incentive Law allows businesses and individuals to invest part of what they would pay in income tax in projects approved by the Ministry. Companies may invest up to 1% of this value, and private individuals can invest up to 6%.
In 2010, the funds raised by the Law totaled R$ 181 million, 63.2% more than was invested in 2009 (R$ 110.9 million) and 255.3% more than in 2007 (R$ 50.1 million). In four years (2007-2010), the Sports Incentive Law provided an additional R$ 425 million (about US$ 256 million) in financial resources. During this period, approximately 800,000 people in Brazil have benefited from these resources, including athletes, students and others involved in physical activities, in over 103 different sports.
The Ministry of Sports’ goal is that every Olympic and Paralympic sport has the financial support to fulfill their plans by 2016, when the city of Rio de Janeiro will host the Olympic Games. For example, this year, Brazil's state-owned National Economic and Social Development Bank (BNDES) will sponsor canoeing – a sport that had no prior official support.
According to Ricardo Capelli, Director of the Ministry of Sports and Chairman of the Sports Incentive Act Technical Committee, these results reinforce the fact that sports are becoming part of the country’s public policy. The Sports Incentive Act became a law as part of the Constitution of 1988 and was formalized under the formal structure of the Ministry in 2003.