Federal court denies request of large companies against tax on oil exports

The 16th Federal Court of Rio de Janeiro denied a joint request by large global energy companies, such as Shell, Equinor and TotalEnergies, not to be subject to the incidence of the new tax on oil exports from Brazil, announced last week by the government federal.

Instituted by means of a provisional measure edited by the government to compensate for the partial maintenance of the exemption of federal taxes on fuels, the new rate of 9.2% is questioned by representatives of the energy sector.

“The treatment given by Provisional Measure nº 1.163/2023 is compatible with the constitutional precepts, which is why I consider that there is no relevant basis to support the claim contained in the complaint”, argues federal judge Wilney Magno de Azevedo Silva, in the decision that denies the request of the oil companies.

“There is no indication that the collection of the questioned contribution will make it impossible for the plaintiffs to carry out their business activity”, he adds.

Shell Brasil is one of Petrobras’ main partners in the pre-salt layer and the second largest oil producer in the country, after the state-owned company. Repsol Sinopec and Petrogal, from Galp, are also participating in the lawsuit filed by the companies.

On another front, the Liberal Party filed a direct action of unconstitutionality at the Federal Supreme Court (STF) with a request for a precautionary measure to suspend the effects of the MP that created the tax until a final decision is reached.

The action was distributed to court minister Gilmar Mendes, who, as rapporteur, has not yet issued a decision.