US EditionBrazil Court Exempts some Oil Firms From Export Tax
- On April 7, Judge Humberto de Vasconcelos Sampaio of the 1st Federal Court of Rio de Janeiro granted an injunction suspending the 12% oil export tax for Shell Brasil, Equinor, TotalEnergies, Petrogal, and Repsol Sinopec.
- The five multinationals argued the tax, created by Medida Provis 1.340 on March 12, served a purely fiscal purpose; the judge agreed, ruling it a "true deviation of purpose."
- Finance Minister Dario Durigan designed the 12% tax to generate $30 billion, offsetting $20 billion in diesel tax cuts and $10 billion in producer subsidies.
- The Procuradoria-Geral da Fazenda Nacional immediately appealed to the Regional Federal Tribunal of the 2nd Region , arguing the tax remains a legitimate regulatory tool during the Iran war oil crisis.
- Industry lobby IBP warns the tax hinders long-term investment, while Energy Minister Alexandre Silveira maintains firms should "pay a little bit more" given their Middle East conflict earnings.
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15 Articles
Court Blocks Brazil's War-Era Oil Export Tax
Key Points — A federal judge in Rio de Janeiro suspended the 12% export tax on crude oil for five multinational producers — Shell, Equinor, TotalEnergies, Petrogal, and Repsol Sinopec — ruling the levy has a purely fiscal purpose that violates constitutional requirements — The Procuradoria-Geral da Fazenda Nacional immediately appealed to the TRF2, calling […] The post Court Blocks Brazil’s War-Era Oil Export Tax appeared first on The Rio Times.
The decision suspended the Export Tax which provides for 12 per cent savings on crude exports and 50% on diesel exports, justifying that the Government used it as a "martially profitable" instrument.
Brazilian judge suspends 12% crude oil export tax for five international oil companies
A federal judge in Rio de Janeiro issued a preliminary injunction suspending the 12% crude oil export tax for five international companies operating in Brazil: Shell, TotalEnergies, Equinor, Repsol Sinopec and Petrogal. The ruling represents an initial court victory for the oil companies in their dispute with President Luiz Inácio Lula da Silva's government over a levy they consider unconstitutional.
The government issued a decree establishing a 12% levy on oil export revenue to compensate for the exemption of PIS/Cofins taxes on diesel, in response to the war scenario.
The Prosecutor-General of the National Fazenda (PGFN), a legal body bound to the Ministry of Fazenda, appealed against the decision of the Federal Court of Justice in Rio de Janeiro which seized 12% of the amount of oil export tax. The confirmation of the appellant's appeal is from the Federal Regional Court of the 2nd Region (TRF2), which has jurisdiction over the states of Rio de Janeiro and the Holy Spirit. Related news:Related news:The order…
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