FIFA to be exempt from taxes

Brasilia - Brazil agreed on Thursday to exempt FIFA and its partners from taxes for any goods and services related to the 2014 Soccer World Cup.

Brazilian Sports Minister Orlando Silva said the deal was reached in his meeting with FIFA secretary-general Jerome Valcke. Brazilian Planning Minister Nelson Machado and the president of the Brazilian Football Confederation (CBF), Ricardo Teixeira, were also present.

Silva said the television network that officially broadcasts the tournament will also be tax exempt.

"The decision to exempt FIFA is based on the assessment that Brazil stands to win a lot more by the stimulating effect on the economy. Releasing tax money will have a smaller impact than what is set to be generated by the economy and will be collected through taxes," the minister noted.

Silva said the deal is still pending ratification by Congress. The tax exemption is expected to be valid January 2011-December 31, 2015, more than a year after the World Cup ends.