Brazil’s foreign trade body, Camex, has extended the 12% tax on crude oil exports for an additional 60 days, a move announced shortly after a local court suspended the levy. The decision, reported by local media outlet Valor Econômico, leaves the future of the tax collection in limbo amid ongoing disputes between oil companies and the government of President Luiz Inácio Lula da Silva.
The extension comes after a court ruling earlier on Thursday temporarily halted the export tax, prompting immediate action from Camex to reinstate the measure. The 12% rate, which applies to crude oil shipments abroad, has been a point of contention between the government and the country’s oil industry, with producers arguing the levy increases operational costs and reduces competitiveness.
The legal challenge and subsequent extension underscore the volatility surrounding the tax policy, which has faced repeated scrutiny since its implementation. Oil companies had previously sought clarity on the tax’s duration and scope, but the latest court intervention has delayed resolution. The government has not indicated whether further extensions or permanent adjustments to the policy are under consideration.
