Oil and gas sector discusses impact of tax reform

Exame magazine highlighted the participation of Dr. Eduardo Maneira in a debate promoted by the website JOTA, in partnership with IBP, which discussed the impact of tax reform on the oil and gas sector.

Oil and gas sector discusses impact of tax reform

Oil industry supports tax reform, but highlights the need for improvements in the text of PEC 45, which will be discussed in the Senate

October 23, 2023

(Photo: ThinkStock/Thinkstock)

Pending a vote in the Senate, the text of the tax reform is a subject that arouses the interest of multiple sectors of the economy, as it could directly impact industry activities. For the oil and gas (O&G) sector, currently responsible for around 15% of industrial GDP according to the IBP, the debate on the impacts of the new proposals requires immediate attention.

On the last day of October, responding to the need, the Brazilian Institute of Oil and Gas (IBP) brought together experts, government and industry at the event “Tax Reform and the oil and gas sector”, held in partnership with the JOTA portal, in Brasília.

On the occasion, the president ofIBP, Roberto Ardenghy, defended the centrality and great importance of the sector in the debate on tax reform given its weight in the economy and the collection of the country. “In the context in which the world currently depends on 80% of energy sources such as oil, gas, coal, and the O&G sector has a major impact on the national economy, bringing the discussion of reform to the sector is fundamental”, he pointed out.

According to IBP estimates, between 2024 and 2033, the oil and gas exploration and production segment should generate R$3.7 trillion in tax collection, contributing to the country's fiscal balance and generating revenue that will be converted into public policies.

Defense of specific tax regimes

The IBP and its members understand that meeting the particularities of different economic sectors is a challenge for parliament and the executive branch, which at the same time time needs to create a healthy fiscal environment for the country without seriously affecting government revenues.

Present at the seminar, the Executive Secretary of the Ministry of Planning, Gustavo Guimarães, highlighted the importance of the O&G sector for the economy, as well as the need for differentiated attention to the segment, through specific tax regimes. “In the PEC that is in Congress, our perception is that the possibility of maintaining special regimes is in the text, it is met, with space to maintain what is working”, highlighted Guimarães referring to the Repetro regime.

Needs of the productive sector

This showed concern regarding maintaining the competitiveness of the industry, within the scope of the reform discussion. For Daniel Elias, president of Galp in Brazil, simplification and clarity are necessary values ​​for the performance of the Brazilian economy and our sector. “It is also important to have an international view of the topic, because companies evaluate fiscal and tax criteria to make investments and allocate their resources”, he concluded.

Impact on investments

Deloitte Brasil's tax consultancy partner, Monique Teixeira de Almeida, revealed that investors are interested in tax reform to know how investments will be maintained. “We have noticed optimism on the part of companies, due to the possibility of simplifying the Brazilian tax system”, he says.

Seeks to improve proposals

Eduardo Maneira, professor of Tax Law at the Federal University of Rio de Janeiro (UFRJ), has already drawn attention to points of interest in the oil and gas sector that can be improved in the text that will be discussed in the Senate, such as the IPVA on vessels; state contributions on primary products and others that need more clarity, such as special regimes. "The O&G sector is under a specific regime, which does not mean privilege. In general, I think that the oil and gas sector, despite these points that deserve attention, will be well attended to. But there are points that need improvement", he highlighted.

The full broadcast of the event is available on the JOTA channel.

https://exame.com/bussola/setor-de-oleo-e-gas-discute-impacto-da-reforma-tributaria/