Oil export tax renewed through November, but collection suspended for Abep members
Gecex-Camex extended the 12% rate on crude oil for 60 days, while an injunction from the Federal Court suspended collection for companies affiliated with Abep. The judicial decision may still be overturned.
The federal government extended the 12% Export Tax rate on crude oil for another 60 days. The decision was made by Gecex-Camex, which is linked to the Ministry of Development, Industry, Foreign Trade and Services (Mdic), and formally keeps the tax in place until November 6, 2026.
The renewal took place on August 27, the same day that the Federal Court of the Federal District granted an injunction suspending collection for companies affiliated with the Brazilian Association of Oil and Gas Exploration and Production Companies (Abep). The suspension applies to collections made from that date onward and does not cover amounts collected previously.
The decision was issued by Judge Diego Câmara of the 17th Federal Court of the Federal District in a collective writ of mandamus filed by Abep. The judge held that the Executive could not recreate, through an administrative resolution, a tax created by a provisional measure that expired without a vote by Congress.
According to the court’s reasoning, the Constitution bars the reissuance, in the same year, of a provisional measure with the same content. In the judge’s view, renewing the rate through an act of Gecex-Camex could circumvent the legislative process.
The tax had been introduced in March and renewed by Gecex-Camex on July 9 for 60 days. The government defended the collection as a temporary and regulatory measure intended to discourage oil exports and preserve supply for the domestic market amid a scenario of international instability.
The economic team also linked the tax revenue to funding subsidies for gasoline and diesel producers and importers. By July, cumulative revenue from the tax had reached R$ 7.982 billion.
The injunction represents another chapter in the legal dispute brought by companies in the sector. A favorable decision obtained in April was later overturned by the Federal Regional Court of the 2nd Region. The merits of the latest action will still be analyzed, and the injunction may be upheld or overturned.
As a result, the rate remains provided for in the administrative rule through November, but collection is suspended by court order for the companies covered by Abep’s action. The government still needs to assess the effects of the injunction and the measures that may be adopted.