Brazil’s Oil Export Tax Is Back as Court Overturns Industry Injunction
A Brazilian appeals court reinstated the 12% crude oil export tax, overturning the injunction won by oil producers four days earlier. The levy has raised about US$1.6 billion through July. The post Brazil’s Oil Export Tax Is Back as Court Overturns Industry Injunction appeared first on The Rio Times .
Brazil’s 12 percent export tax on crude oil exports has been reinstated by a federal appeals court after an injunction that suspended it was overturned. The tax had been put on hold on Thursday by a lower-court judge in Brasília, following a lawsuit brought by ABEP, the oil producers’ association. The levy generated R$7.98 billion (approximately US$1.55 billion) through July, a sum used by the government to fund fuel subsidies.
Producers contend that the tax is an unconstitutional revenue grab disguised as regulation, while the government maintains it shields the domestic fuel market from volatile oil prices caused by the Middle East conflict and supports subsidies for gasoline and diesel. The tax, initially imposed as a provisional measure, was renewed by the Gecex-Camex committee twice, with the current extension running until November.
The tax's future remains uncertain as ABEP can still appeal, but with two regional courts now supporting the government, the industry's legal options are significantly limited.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
