Oil And Gas Sector On Alert: Challenges With New Taxation

Written by Corporativo

Published on 12/01/2024 at 06:38

Foto: https://www.ibp.org.br/noticias/posicionamento-ibp-reforma

Be the first to react!

Economic Impact of the Oil and Gas Sector in Brazil

The Oil and Gas (O&G) sector, one of the pillars of the Brazilian economy, faces challenges with the introduction of new taxes. The Brazilian Institute of Oil and Gas (IBP), representing the sector, emphasizes the relevance of the oil industry in generating jobs, income, and significant fiscal contributions through taxes, royalties, and special participations. In 2023, the oil and gas industry in Brazil contributed R＄ 92.2 billion in payments, including R＄ 53.6 billion in royalties and R＄ 38.6 billion in special participation, according to data from ANP. These resources are essential for meeting fiscal targets and developing public policies by the Union, States, and Municipalities.

The sector was responsible for 10% of the country’s industrial GDP in 2020, according to CNI, and exports of oil and derivatives generated a surplus of US＄ 80 billion over the past four years. The segment plans to invest US＄ 183 billion in exploration and production between 2022 and 2031, sustaining an average of 445 thousand jobs per year.

Challenges with New Tax Burdens

Despite the high tax burden on the sector, around 70%, which already provides significant revenue, Governments have been promoting increases in this burden. The Control, Monitoring, and Inspection Fee for Oil and Gas Exploration and Production Activities (TFPG), approved by the government of the State of Rio de Janeiro in December 2023, and the Selective Tax, introduced in the Tax Reform, pose significant risks for the sector and society.

ARTICLE CONTINUES BELOW

IBP Vision and the Future of the Sector

The IBP and its associates believe that the sustainable and continuous development of the Brazilian oil and gas industry depends on a business environment that values rule stability, dialogue between public and private agents, and actions that continuously attract investments to the sector. The entity emphasizes the need for balance in tax decisions to ensure the growth and competitiveness of the sector in the global scenario.

Source: Rodrigo Dutra – dutra@fsb.

Oil And Gas Sector On Alert: Challenges With New Taxation

Economic Impact of the Oil and Gas Sector in Brazil

Challenges with New Tax Burdens

IBP Vision and the Future of the Sector

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

Study solves great ancient mystery: remains of Philip II, father of Alexander the Great, are identified in Vergina and resolves the enigma of the Macedonian royal tombs that had lasted half a century.

Portugal installs two giant underwater sockets to draw water from the Atlantic and create a €107.9 million desalination plant in the Algarve capable of producing 43.2 million liters of potable water per day with ocean intake 2 km from the coast.

China wants to transform coal waste into a source of critical metals and use industrial ash to extract germanium, lithium, gallium, and aluminum used in batteries, chips, and electric vehicles.

The United States will spend $325 million to resurrect drones with a 40-meter wingspan, flying for 34 consecutive hours at an altitude of 18,000 meters, just to time the speed of their own Mach 5 missiles.

Family has lived for over 50 years without electricity and running water at home in the South of Minas, 10 minutes from the city, improvising light, bath, and water while facing a lack of basic resources and awaiting property regularization.

800-year-old skeletons found embracing have their impressive story revealed after DNA results

Christmas trees thrown away become a natural barrier in Alabama, where teams repurpose thousands of pines on the beaches of Gulf Shores to trap sand, rebuild dunes, and protect houses against storms and hurricanes for almost four decades.

Oil And Gas Sector On Alert: Challenges With New Taxation

Economic Impact of the Oil and Gas Sector in Brazil

Challenges with New Tax Burdens

IBP Vision and the Future of the Sector

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

Study solves great ancient mystery: remains of Philip II, father of Alexander the Great, are identified in Vergina and resolves the enigma of the Macedonian royal tombs that had lasted half a century.

Portugal installs two giant underwater sockets to draw water from the Atlantic and create a €107.9 million desalination plant in the Algarve capable of producing 43.2 million liters of potable water per day with ocean intake 2 km from the coast.

Farmer drills well in Ceará in search of water, accidentally finds crude oil and sees million-dollar discovery hindered by a rule that completely changes the future of the site.

Family finds oil on a 49-hectare site in Ceará, but exploration has no timeline or guarantee of happening

When drilling an artesian well, a farmer wanted water but found oil: ANP confirms that the dark liquid found by a farmer on a site in Ceará is crude oil.

European stocks rise with oil drop after Trump’s remarks on Iran as investors monitor global tension

While the Brazil-Peru rail has been under study for 11 years, China-Brazil unlock the $18.5 billion bi-oceanic corridor Manaus-Chancay to challenge the Panama Canal

China wants to transform coal waste into a source of critical metals and use industrial ash to extract germanium, lithium, gallium, and aluminum used in batteries, chips, and electric vehicles.

The United States will spend $325 million to resurrect drones with a 40-meter wingspan, flying for 34 consecutive hours at an altitude of 18,000 meters, just to time the speed of their own Mach 5 missiles.

Family has lived for over 50 years without electricity and running water at home in the South of Minas, 10 minutes from the city, improvising light, bath, and water while facing a lack of basic resources and awaiting property regularization.

800-year-old skeletons found embracing have their impressive story revealed after DNA results

Christmas trees thrown away become a natural barrier in Alabama, where teams repurpose thousands of pines on the beaches of Gulf Shores to trap sand, rebuild dunes, and protect houses against storms and hurricanes for almost four decades.