Rio de Janeiro Municipalities Receive R$ 181 Million from State Government Related to Oil Royalties, IPI, ICMS, and IPVA Collections for the First Week of March

The value transferred by the Government of Rio de Janeiro is related to the collection made between February 28 and March 3. More than R$ 181 million were delivered to the municipality in oil royalties, IPI, ICMS, and IPVA.

The municipalities of Rio de Janeiro benefit from the high amounts transferred by the Finance Secretary regarding the collection of oil royalties, IPI, ICMS, and IPVA. More than R$ 181 million were transferred by the State Government to the cities, related to the period between February 28 and March 3. In 2023 alone, more than R$ 2.8 billion were transferred to the municipalities from this segment.

State Government of Rio de Janeiro Transfers R$ 181 Million in Oil Royalties and Other Sector Taxes

The year 2023 has been marked by significant results in the oil and natural gas sector across various Brazilian states, especially in Rio de Janeiro.

Home to a major production hub of fuels, the state is experiencing impressive results in monetary collection related to sector projects.

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Only concerning the period between February 28 and March 3, the State Government transferred more than R$ 181 million to the municipalities in oil royalties, IPI, ICMS, and IPVA.

Moreover, in 2023, more than R$ 2.8 billion were transferred to municipalities related to the collection from the segment. This reinforces Rio de Janeiro’s current position in the Brazilian oil and natural gas market.

It is the responsibility of the Finance Secretary to execute weekly deposits, according to the determinations of Complementary Law No. 63, of January 11, 1990. All amounts related to the collection and transfer of royalties can be consulted on the Treasury Portal of the Finance Secretary of Rio de Janeiro. 

Transfers to the Municipalities of Rio de Janeiro Are Variable, but the State Remains Steady in the National Fuel Market

The collection of royalties in the oil and natural gas sector can vary significantly due to not only internal factors but also international rates charged on products.

Thus, the transfer made by the Government of Rio de Janeiro to the municipalities weekly does not have a set ceiling, being impacted by the flexibility in collection.

As such, it can reach up to 5 total transfers, depending on various factors, such as the monthly calendar, tax collection deadlines and the total amount of collected resources.

All these transfers are conducted based on the Municipal Participation Indices (IPM), calculated annually for application in the following exercise, as per the Federal Constitution and Complementary Federal Law No. 63, of January 11, 1990.

The State Laws No. 2,664, of December 27, 1996, and No. 5,100, of October 4, 2007, as well as State Decree No. 47,664, of June 29, 2021, are also considered for the calculation.

Thus, the Government of Rio de Janeiro can efficiently control the transfer of oil royalty collections in the state.