Provisional measure establishes export tax on sales of crude oil
The Brazilian Government published today Provisional Measure #1,163/2023 (“MP 1,163/23”), which establishes a 9.2% tax rate on crude oil exports for the next four months.
As per informed by the Minister of Finance, Fernando Haddad, the establishment of the export tax has a regulatory nature and should stimulate new investments in the refining sector in Brazil since the companies would have higher costs with the foreign sales of crude oil. Historically, crude oil exports were not taxed, and the measure is raising concern in the sector as it could affect the country’s competitiveness in the international market.
The establishment of the tax was part of a package of measures announced yesterday, which includes the partial return of federal taxes on gasoline and ethanol (PIS/COFINS and CIDE) in relation to what was charged until last year, a topic that was also addressed by MP 1,163/23.
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