Brazil’s 12% crude oil export tax has been extended for another 60 days after an appellate court reinstated the levy, while oil producers continue to challenge its legal basis.
Brazil’s 12% export tax on crude oil remains in effect after a federal appellate court overturned a lower-court ruling that had suspended the levy for companies represented by the Brazilian Association of Exploration and Production of Oil and Gas (ABEP). The ruling has left oil exporters facing continued uncertainty as legal proceedings remain pending.
The tax was introduced in March 2026 through a provisional measure covering crude oil and bituminous minerals. The measure lapsed on 9 July after Congress failed to approve it within the constitutional deadline.
On the following day, the Foreign Trade Chamber (CAMEX) reinstated the 12% rate through a resolution, citing disruptions to global oil prices linked to the conflict in the Strait of Hormuz. CAMEX later extended the measure for another 60 days from 8 September.
ABEP challenged the reinstatement, arguing that CAMEX’s resolution effectively re-enacted the expired provisional measure and bypassed constitutional restrictions on reissuing measures that had not secured congressional approval. It also argued that the tax lacked a genuine regulatory purpose and was primarily intended to raise revenue.
A federal district court in Brasília accepted the arguments and suspended the tax for ABEP members on 27 August. However, the Federal Regional Court of the 1st Region overturned that decision on 31 August, finding that the CAMEX resolution and the provisional measure were legally separate instruments.
The appellate ruling reinstates the tax for ABEP members. Other exporters remain subject to the 12% levy, while both the appeal proceedings and the underlying lawsuit continue.
