Brazil retains 12% oil export taxes, to review the measure in 30 Days

Brazil's government approved Thursday the extension of the 12% tax on crude oil exports for 60 more days. The measure was introduced in March to combat the rising price of oil linked to the Iran War.

Gecex took the decision, the executive management of Brazil's Foreign Trade Chamber Camex. In a statement, it said that they would review "the measure" in 30 days. The government had argued recently that lower 'oil prices' could lead to the elimination or reduction of the export tax. However, this option has been shelved.

Gecex reiterated that this measure was temporary and adopted "in view of the developments in the international scenario and their impact on the oil and fuel markets." Brent crude futures traded lower at $76 per barrel on Thursday, but they rose on Wednesday to reach their highest level since the 22nd of June as tensions increased in the Middle East. Prices, however, remain well below the more than $118 per barrel that was reached in late February, shortly after war broke out.

The government of President Luiz nacio Lula da Silva has claimed that the revenue from the tax would help to fund measures aimed at protecting consumers from inflationary effects caused by the war.

The government announced a series of fuel subsidies for gasoline, diesel, aviation 'fuel, and cooking gas. The government announced last week that it would be reducing these tax breaks gradually in response to the fall of Brent oil prices. Finance Minister Dario Durigan announced earlier Thursday that the decision to remove a gasoline subvention has been delayed until next week. (Reporting from Marcela Ayres, Brasilia. Editing by Matthew Lewis.)

(source: Reuters)