This implementation aims to improve investment in the oil and gas sector, making companies invest more in the oil sector

Measures to reduce the tax burden for the oil and gas sector were announced this week by the Planalto Palace. Published in the official gazette of the union yesterday (25) by the government, the decree that determines the special regime for the industrialization of goods destined for the exploration and production of oil and gas, called “Repetro-Industrialization”. According to the information in the decree, the prospectus will allow importing or obtaining raw materials and packaging used in activities related to the oil market on the domestic market.

These purchases will be suspended from paying a series of federal taxes, provided they are fully used in the production process of the final product intended for exploration, development and production of oil and natural gas and other fluid hydrocarbons.

The taxes listed in the text that are no longer charged are Import Tax; Tax on Industrialized Products – IPI; contribution to PIS/Pasep-Import; contribution to Cofins-Importation; contribution to PIS/Pasep; and contribution to Social Security Financing – Cofins.

The statute of limitations clarifies that the period of suspension of payment of federal taxes for the application of the Repetro-Industrialização will be of up to one year, which may be extended for a period not exceeding five years. Companies that comply with the terms and conditions and determined by the Brazilian Federal Revenue Office of the Ministry of Finance may operate under the regime upon authorization.

With this government action, we can expect more investment in the oil and gas sector so that the country can once again have a more positive presence in the world market.

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