Brazil petroleum export tax faces legal suspension

A legal conflict has emerged in Brazil regarding a 12% export tax on crude oil and bituminous minerals. A federal judge in Brasília, Diego Câmara, issued an injunction suspending the tax following a request from the Brazilian Association of Oil and Gas Exploration and Production Companies (Abep).

The tax was originally established via a provisional measure to offset federal tax reductions on diesel, but the measure expired in July after failing to receive Congressional approval. Despite this, the Executive Committee of Management of the Foreign Trade Chamber (Gecex-Camex) moved to reinstate the 12% rate through an administrative act, arguing it is a regulatory tax that does not require legislative approval.

Gecex-Camex has extended the 12% export tax for an additional 60 days, effective September 8. While the court order suspends the collection, the judge did not explicitly authorize the restitution or compensation of funds already paid by exporting companies. The legal dispute between the administrative decision and the judicial injunction is expected to be resolved in the courts.