Regulatory roundup: Tax reform, investment regime, PPPs and more

The tax reform regulations Brazil's lower house approved

Brazil’s lower house approved key regulations for the tax reform that was passed last year and is aimed at simplifying the system.

The reform will replace taxes like PIS, Cofins, IPI, ICMS and ISS with the federal and state IBS and CBS taxes, equivalent to VAT in other countries. The regulations must still be approved by the senate, and the tax regime is expected to be implemented gradually between 2026 and 2033. 

Provincial projects expected to benefit from Milei’s investment regime, experts say

Experts expect Argentina’s provincial governments to benefit from President Javier Milei’s large investment incentive regime (Rigi). 

Part of the president’s economic framework law that was recently passed by congress, Rigi will give projects with investment of at least US$200mn tax, customs and exchange rate benefits for 30 years. Provinces will be able to be involved as long as the taxes to be applied are only those in force previously, with no new levies at a provincial level.

Chile looking to overhaul maritime concessions to boost desal efforts

The reform of maritime concessions is a big part of Chile’s desalination strategy, although it remains to be seen which agency will take over control of the process of granting these permits from the armed forces department.

Under the current system it takes an average of 45 months to obtain approval for a maritime concession, as opposed to the 12 it takes for concessions on land, national assets minister Marcela Sandoval said during a public hearing of the senate water resources committee. Maritime concessions are cited as one of the main bottlenecks for water desalination plants and other projects on Chile's coast.  

Developing Brazil's rail network hinges on private sector partnerships

The Brazilian government has recognized that it has little budgetary room to make significant public investments in railroads, which is why it has been trying to attract private investors to the sector. 

During a hearing in the senate infrastructure committee, planning minister Simone Tebet said it would be necessary to structure a regulatory framework to define the best partnership model between local and international companies to carry out these projects. 

Brazil launches port sector expansion program

Brazil launched a program to spur investments in new private use port terminals by simplifying and reducing bureaucracy in terms of sector regulation processes.

The Navegue Simples program was presented by waterway transport regulator Antaq and the ports and airports ministry.

Brazil holds public consultation for use of debentures to finance ports, airports

The Brazilian ports and airports ministry kicked off a public consultation to update and simplify the regulation for the use of local bonds known as debentures.

Debentures have been one of the main mechanisms for financing projects in the country’s infrastructure sector. The consultation will be open until July 20.

Mexico construction chamber confident in the return of infra and energy PPPs

Mexican construction chamber CMIC is confident in the return of public-private partnerships and increased private sector participation in the infrastructure and energy sectors during the incoming administration of president-elect Claudia Sheinbaum, who will take office on October 1.

CMIC president Luis Méndez Jaled said more transparent regulations would be necessary to pave the way for an increasing number of PPPs.