Aug 27 (Reuters) – Brazil’s oil export tax was thrown into uncertainty on Thursday after a local court ordered the suspension of the levy while the government’s foreign trade chamber approved extending it for another 60 days.
The conflicting moves leave the future of the 12% tax, which is being challenged by oil companies, unclear and set up a potential legal battle between President Luiz Inacio Lula da Silva’s administration and oil producers.
Foreign trade chamber Camex approved the extension of the tax, which had been due to expire early next month, for 60 days starting on September 8, the trade and industry ministry said in a statement.
However, a federal court had granted an injunction suspending the levy, according to a decision seen by Reuters.
The tax was introduced earlier this year as part of a package of measures adopted by the Lula administration to shield consumers from higher oil prices following the U.S.-Israeli war on Iran and the closure of the Strait of Hormuz.
At the time, the government argued the revenue obtained from the tax would help fund fuel subsidies, including for diesel, gasoline, jet fuel and cooking gas.
The duty affected Brazil’s state-run oil firm Petrobras, which paid around 4.9 billion reais ($948.27 million) in export taxes during the second quarter, regulatory filings showed.
The suspension of the tax could also benefit other major oil producers operating in Brazil, including Shell, Equinor and TotalEnergie.
($1 = 5.1673 reais)
Brazil Energy Insight 
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