Oil export tax should slow investments, says the Brazilian Institute of Oil and Gas
The creation of an oil export tax should curb investments in the sector and have consequences on the federal revenue itself, according to the president of IBP (Brazilian Institute of Oil and Gas), Roberto Ardenghy, in an interview with Poder360.
“The tax is federal, but the state and the municipality end up collecting less in ICMS [Tax on the Circulation of Goods and Services] and ISS [Tax on Services of Any Nature].”
“That project that was going to be carried out, that machine that was going to be ordered, that service that was going to be rendered, will no longer go because of this investor not feeling comfortable to invest in Brazil”, he stated.
According to Ardenghy, IBP is talking to congress members so that this section of the MP (provisional measure) 1.163 of 2023 is removed.
The institute has also filed with the Supreme Court (STF) to question the rule’s constitutionality.
The federal government created the 9.2% tax on oil exports at the end of February, valid for four months.
During this period, the costs for the sector should reach US$1.2 billion, according to IBP.
Ardenghy participated in the seminar “Future and opportunities of the oil and gas sector in Brazil” by IBP in partnership with Poder360.
“What we ask, and that is why we came to Brasília to bring this message, is regulatory stability, compliance with contracts, and that taxes are not sent without legal provision,” he said.
According to the executive, the oil industry is expected to generate US$180 billion in investments and more than 500,000 jobs.
SEMINAR
IBP (Brazilian Institute of Oil and Gas) held, with the support of Poder360, the seminar “Future and opportunities of the oil and gas sector in Brazil”, on Wednesday (March 22), at 8:30 am, in Brasília.
The prospects for growth in the oil and gas industry in the coming years, new business opportunities for the sector, and the importance of maintaining the regulatory framework and legal certainty in the country were topics discussed at the event.
The face-to-face meeting was reserved for guests, and the recording will be available on the digital newspaper’s YouTube channel.
The oil and gas industry plays a strategic role in Brazil for its energy imports and the benefits provided to society, such as attracting investment and creating jobs and income.
The sector represents 15% of the country’s industrial GDP (Gross Domestic Product) and has investments of around US$180 billion foreseen in exploration and production until 2031, according to IBP.
The event had four panels that approached the upstream (exploration, drilling, and oil production), the downstream (transportation, distribution, and marketing of oil derivatives), natural gas, and sustainability and innovation in the sector.
The speakers were representatives from the country’s largest companies in the industry.
Read the full schedule.
Opening of the event:
- Roberto Furian Ardenghy, president of IBP;
- Mauricio Tolmasquim, presidential advisor and representative of the president of Petrobras and full professor at Coppe – Alberto Luiz Coimbra Institute for Graduate Studies and Engineering Research, UFRJ (Federal University of Rio de Janeiro); and
- Mediator: Fernando Rodrigues, editorial director of Poder360.
Panel 1: The positive externalities of the oil industry – The upstream as an example
- Decio Oddone, CEO of Enauta;
- Daniel Elias, CEO of Petrogal Brasil and Country Chair; and
- Panel 1 Mediator: Júlio César Moreira, IBP’s Executive Director of E&P.
Panel 2: Downstream Investments – Opportunities and national challenges
- Luiz de Mendonça, Acelen’s CEO; and
- Panel 2 Mediator: Valéria Lima, IBP’s Downstream executive director.
Panel 3: The development of the national natural gas industry
- Veronica Coelho, President, Equinor Brazil
- Cristiano Pinto da Costa, president of Shell Brazil;
- Flávia Barros, Commercial Director of Origem Energia; and
- Panel 3 Mediator: Sylvie D’Apote, Natural Gas executive director at IBP.
Panel 4: Sustainability and innovation in the oil and gas sector
- Charles Fernandes, General Director of TotalEnergies EP Brazil and Country Chair;
- Panel 4 Mediator: Fernanda Delgado, IBP’s Corporate Executive Director.
The complete coverage of the seminar, with the main discussions on the mentioned themes, and the event video [in Brazilian Portuguese] are available on Poder360.
With information from Poder360
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