Government Extends Oil Export Tax Through December

The Foreign Trade Chamber has decided to maintain the 12% levy on crude oil exports. The measure will remain in effect until December 31. This marks the third time the government has extended the tax, which was set to expire this Saturday.

The government describes the tax as a regulatory measure, even though it has generated 12.87 billion reais for public coffers this year. In September, revenue from this fee totaled 2.94 billion reais. Export volumes for the product grew by 22% in October compared to the previous month.

The government faces legal challenges from industry companies regarding the tax. The Federal Revenue Service notes a two-month gap between the shipment of the commodity and the actual collection of the tax. With the recent increase in shipments, monthly revenue could reach double the current average of 3.5 billion reais.

Maintaining the tax burden on the energy sector may pressure the margins of exporting companies and influence the cash flow of oil firms listed on the Brazilian stock exchange.