New Tax On Oil Production Will Lead To Increased Gasoline And Diesel Prices, Says IBP

Written by Paulo Nogueira

Published on 27/10/2023 at 21:31

Senado, Eduardo Braga (MDB-AM), estabeleceu um teto de 1% na cobrança de um Imposto Seletivo sobre a extração de recursos naturais não renováveis

Be the first to react!

Oil companies with a presence in Brazil argued on Wednesday (25) for the elimination of the selective tax of 1% on oil extraction from the document.

The selective tax for the oil sector will increase the prices of gasoline and diesel, says IBP. Oil companies operating in Brazil defended on Wednesday (25) the removal of the selective tax of 1% on oil extraction from the tax reform text. They argue that including the sector could cause inflationary pressure and undermine Brazil’s competitiveness against other countries in the race for investments. The report on the reform, published earlier by the matter’s rapporteur in the Senate, Eduardo Braga (MDB-AM), established a ceiling of 1% for the collection of a Selective Tax on the extraction of non-renewable natural resources, such as iron ore and oil, among other sectors.

Roberto Ardenghy, president of the Brazilian Institute of Oil (IBP), which represents oil companies like Petrobras, Shell, and Exxon Mobil in Brazil, stated that the segment is already highly taxed throughout the production chain. He cited taxes such as special participation and royalties, which are levied on oil production, as well as Cide, which is charged on the commercialization of fuels.

“Brazil consumes 390 million liters of diesel, gasoline, and other fuels per day, it is a huge market, all sectors of the economy have a greater or lesser dependence on this activity”, highlighted Ardenghy. “So, when you create an external tax, not foreseen for this sector, you inevitably generate an inflationary pressure that will affect all consumers… We believe this measure should not prosper because it burdens society as a whole.”

ARTICLE CONTINUES BELOW

See also

More expensive gasoline and diesel. In his report, Braga specified that the collection of the selective tax on the extraction of non-renewable natural resources will be limited to 1%. According to him, Congress may subsequently define essential inputs for the country’s development, such as lithium, that could be exempt from this charge. However, Ardenghy also defended the essentiality of the oil and derivatives segment.

“The selective tax is traditionally a tax for luxury activities, such as cigarettes, alcoholic beverages, and other sectors that do not have the economic importance that the oil and fuel production sector does”, he stated. “People cannot simply decide not to use fuel; it is not a decision like quitting smoking or drinking”, he added.

Regarding the potential loss of competitiveness pointed out, Ardenghy stated that the oil sector is globalized. “The moment you impose a tax on oil extraction, as proposed, you automatically generate a burden on the project not originally foreseen, and then companies may decide to go to other countries”, he stated.

Also read: Buy or Sell? Vale (VALE3): More dividends and appreciation; today’s jump may just be the beginning, say analysts. Ups and downs of the Stock Market. Ibovespa: Banco do Brasil (BBAS3) is the negative highlight while Vale (VALE3) advances; see.

New Tax On Oil Production Will Lead To Increased Gasoline And Diesel Prices, Says IBP

Oil companies with a presence in Brazil argued on Wednesday (25) for the elimination of the selective tax of 1% on oil extraction from the document.

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

Brazil, Norway, and the Netherlands aim to create the first green maritime corridor in the Atlantic, after routes emitted 4.7 million tons of CO₂e, and seek to transform ports, fuels, and trade between South America and Europe into a new global logistics race.

Russia wants to build new nuclear plants in Brazil and is negotiating an agreement with the Lula government to expand Rosatom’s presence in atomic energy projects, small reactors, and peaceful nuclear technology.

Microscopic fossils 1.7 billion years old found in rocks in Australia reveal complex cells living at the bottom of an ancient sea and may change what scientists know about the evolution of life on Earth.

Seen from space, an underwater volcano erupts in the Pacific, spewing smoke directly from the sea, spreading floating pumice, and may be creating a new island in a region so poorly mapped that scientists still do not know exactly which structure is erupting.

Researchers identify marks of Ice Age megafloods in the United States, a phenomenon that crossed Montana, Idaho, Washington, and Oregon, sculpted rolling hills like waves, and left giant scars that still challenge the landscape.

New Tax On Oil Production Will Lead To Increased Gasoline And Diesel Prices, Says IBP

Oil companies with a presence in Brazil argued on Wednesday (25) for the elimination of the selective tax of 1% on oil extraction from the document.

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

More than 230 Brazilian companies move production to Paraguay, pay a tax rate close to 12%, compared to about 80% in Brazil, and use Mercosur to sell back to the domestic market without import tax.

More than 230 Brazilian companies move production to Paraguay, pay a tax rate close to 12%, compared to about 80% in Brazil, and use Mercosur to sell back to the domestic market without import tax.

Dredged material from navigation channels restores life to Poplar Island, reconstructs 1,715 acres of land, expands open water zones, and creates a refuge for hundreds of migratory and local bird species.

About 500 kilos of green stones with juvenile algae are spread in the ocean to regenerate underwater forests, reduce costs, and accelerate the restoration of marine habitats.

Brazil, Norway, and the Netherlands aim to create the first green maritime corridor in the Atlantic, after routes emitted 4.7 million tons of CO₂e, and seek to transform ports, fuels, and trade between South America and Europe into a new global logistics race.

Russia wants to build new nuclear plants in Brazil and is negotiating an agreement with the Lula government to expand Rosatom’s presence in atomic energy projects, small reactors, and peaceful nuclear technology.

Microscopic fossils 1.7 billion years old found in rocks in Australia reveal complex cells living at the bottom of an ancient sea and may change what scientists know about the evolution of life on Earth.

Seen from space, an underwater volcano erupts in the Pacific, spewing smoke directly from the sea, spreading floating pumice, and may be creating a new island in a region so poorly mapped that scientists still do not know exactly which structure is erupting.

Researchers identify marks of Ice Age megafloods in the United States, a phenomenon that crossed Montana, Idaho, Washington, and Oregon, sculpted rolling hills like waves, and left giant scars that still challenge the landscape.