Ambev Rallies as Brazil Spares World Cup From Beer-Tax IncreaseJulia Leite and Carla Simoes
Ambev SA, the Brazilian unit of Anheuser-Busch InBev NV, climbed after the Brazilian government said an increase in beer taxes won’t go into effect until after the World Cup.
The shares of the Sao Paulo-based brewer climbed 0.6 percent to 16.78 reais at 3:13 p.m. in Sao Paulo, erasing a decline of 1.3 percent. The Ibovespa advanced 0.2 percent.
The tax increase, which had been scheduled to take effect June 1, was postponed until September and will be implemented gradually, Finance Minister Guido Mantega told reporters in Brasilia after a meeting with representatives from the beverage industry today. Ambev plunged the most in five years after the planned tax increase was announced April 30.
“We are of course concerned about inflation remaining under control,” Mantega said. “This sector can give an important contribution, so we made a deal that there would be no price increases during the World Cup.”
Average prices for beer and soft drinks would rise 2.25 percent, Brazil’s tax agency said April 30, increasing the government’s revenue by 1.5 billion reais in 2014. Inflation slowed to 6.28 percent in the 12 months through April from 6.41 percent, the government reported last week.