The Brazilian government announced on 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 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.
Sources: ANBA/Datamar News