OBS_VALUE: The regulation only  recognises tax exemption for the public company in the case of the Trucking tax and only when transporting mailbags or boxes with consolidated mail that does not affect courier services. However, the Federal Supreme Court declared that the public company is exempted from VAT and other local taxes both for its postal and courier services justifying it as a necessary compensation for the cost of universal service in a country of more than 5,000 cities, some of them without roads and with more than 70% of Correios agencies losing money.