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By Marcela Ayres
BRASILIA, March 31 (Reuters) -
Fresh competition in Brazil's lucrative meal voucher market must wait, according to people familiar with discussions between the Finance Ministry and central bank, which disagree about how to regulate a new system in time for its scheduled launch in May.
A law passed in September under former President Jair Bolsonaro allows workers to move their meal credit between providers and spend it at any participating restaurant. But under new President Luiz Inacio Lula da Silva, government efforts to regulate such a "portable" and "interoperable" system have stalled.
Tech companies including the financial services arm of Mercado Libre and meal delivery company iFood expect the rules to let them take a bigger bite of a nearly 150 billion reais ($29 billion) market dominated by a handful of companies.
More competitive options for tens of millions of Brazilians spending their employer-provided meal vouchers may dent profit margins for Sodexo and Edenred subsidiary Ticket. Sodexo got 26% of its operating revenue from Brazil last year and Edenred got 22%, according to investor presentations.
The Finance Ministry says the central bank has jurisdiction to regulate payment systems, but sources said the central bank resisted early proposals to shake up the market and sought to keep its hands off the segment.
The bank's staff believes the voucher market presents no systemic risk. The bank has also said transferring voucher credits could actually hurt competition, creating new barriers to entry by requiring substantial investments in operations, according to two people familiar with the discussions.
A third source said the central bank has flagged a lack of personnel and resources for the new regulatory task, after a strike disrupted the institution last year, delaying economic data releases and high-priority projects.
The standoff has added to already high tensions between the Finance Ministry and central bank, the sources said on condition of anonymity. The two institutions have also traded barbs over fiscal and monetary policy.
The central bank declined to comment on its reported resistance to regulating the market. The Finance Ministry did not respond to questions about the matter.
TAX INCENTIVES
Since 1976, Brazilian companies have received tax benefits for covering the cost of their workers' food. The result is a widespread meal voucher system dominated by Sodexo and Edenred, along with privately held rivals Alelo and VR, all of whom also manage other employee benefits.