Brazil to tax oil exports

The Brazilian government announced this Tuesday (28) it would temporarily tax oil exports for four months.  The measure was implemented due to budgetary issues, so, as a result, the gradual lift of the current tax exemption on fuels in the country can progress.

The announcement of the gradual return of fuel tariffs and the taxation of crude oil exports was made by the Brazilian minister of Finance, Fernando Haddad (PT). The rate levied on exports will be 9.2%. Capital market players fear the rate could become permanent. Tax collection from the new tariff is estimated to reach BRL 6 billion in four months.

Brazil is a crude oil exporter. Last year, international product sales totaled USD 42.5 billion, with a 13% share of the country’s export revenue. Regarding revenue, crude oil was second only to soybeans in Brazil’s most exported products in 2022.

Source: ANBA

To read the original report, please access: https://anba.com.br/en/brazil-to-tax-oil-exports/

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