Brazil Tax Exemption Removal Curbs Wobben’s Wind Turbine Orders

Enercon GmbH’s Wobben Windpower is losing contracts in Brazil after tax authorities canceled some exemptions for wind turbine manufacturers in the country, an official said.

The Brazil unit of Germany’s Enercon had a single customer so far this year, Mathias Moser, a vice president of Wobben, said in an interview yesterday in Rio de Janeiro. The company had considered leaving South America’s fastest-growing market after Brazilian tax authorities in April removed a tax incentive and required turbine makers such as Wobben, Spain’s Gamesa Corp., Tecnologica SA and Denmark’s Vestas Wind Systems A/S to pay back taxes for the exemption.

“This is definitely a restructuring year for us in Brazil,” said Mathias, who came to the country in April amid a management change.

Enercon, based in Aurich, Germany, decided to stay in Brazil last month after filing an appeal on the tax incentive ruling, according to Mathias. He didn’t disclose how much the company owes in back taxes. Brazil is seeking the previous five fiscal years of back taxes for the exemption.

“We have always produced in Brazil, so we have had the benefit for many years,” Mathias said. “It is a lot of money.”

read more: Bloomberg, By Vanessa Dezem Aug 29, 2014

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