STATE OF RIO APPROVES REPETRO AND GIVES RELIEF TO RIO DE JANEIRO’S INDUSTRIES

JUN 11, 2020

With the approval by the Legislative Assembly of Rio de Janeiro of the bill that internalizes Repetro Industrialização in the state, Rio de Janeiro guarantees the maintenance of the ICMS rate at 3% for operations importing equipment (platforms, platform ships and other equipment) for the oil and gas industry, in operations carried out in the state of Rio de Janeiro. It transforms into state law tax agreements in the Confaz 3/2018 and Confaz 220/2019 agreements, provided for in Repetro (special customs regime for the oil and gas sector), which was extended by the federal government in 2017, to the year 2040. One of the main items is precisely the maintenance of ICMS at 3% for equipment imports. The approval brought relief to the oil companies and service providers, as amendments were made during the process with proposals to increase the tax to 18%.

Firjan evaluates a significant improvement in the competitive environment in Rio de Janeiro. Repetro’s confirmation in the state of Rio brings equality to the acquisition of goods and puts Rio de Janeiro back in the game. Also with the adhesion to the CONFAZ 220/2019 agreement, Rio de Janeiro leads the way, being the first to internalize Repetro Industrialização. The companies established in Rio are now able to contribute effectively to the economic recovery after the pandemic, and dedicate efforts to the other challenges already posed for the oil market in Rio de Janeiro: the magnitude of the projects in progress, the resumption of production in mature fields and the challenges related to the execution of the investments already contracted.

Entrepreneur of the oil and gas sector and vice president of Firjan, Raul Sanson, said that “We understand that the internalization of Repetro by Alerj can contribute to the local chain making it more attractive. This new reality has an economic sense, making the production of oil and gas more supported by the industrial base that already exists here or that which will come, lengthening the internal productive chain, generating income and collection here and preserving direct and indirect jobs. ”

Repetro Industrialização will enable greater inclusion of the links in the production chain, with the acquisition in the domestic market of products subject to the Repetro regime for the oil industry. The new rules also provide legal certainty for investors. Among the main advantages of joining Repetro, companies in the productive chain are exempt from the ICMS tax, achieving tax equality in relation to imported goods and compared to other states, in addition to evidencing their logistical advantage in terms of the greater Brazilian volume of exploration and production of oil and gas.

Source: PetroNoticias

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