Brazil: Changes to oil and gas taxation
In brief
Provisional Measure 1,340/2026 (MP), published on 12 March 2026, introduces relevant changes to the tax framework applicable to the oil and gas sector, generating economic, tax, regulatory, and contractual impacts for industry players. The MP entered into force on the date of its publication.
In more detail
The Brazilian President issued today Provisional Measure 1,340/2026 (MP), authorizing the Federal Government to subsidize the commercialization of diesel destined to transportation and levy a 12% Export Tax (IE) on crude or other mineral oils, classified under Code 2709 of the Mercosur Common Nomenclature (NCM), exports.
The MP states that the 12% rate may be reduced by an act of the Executive Management Committee of the Foreign Trade Chamber (CAMEX), if required by foreign trade and national energy policies objectives.
During the period in which the economic subsidy for diesel is in effect, exports of diesel oil classified under code 2710.19.21 will be subject to the Export Tax at a 50% rate.
The MP entered into force on the date of its publication and remains in effect for 60 days, automatically extendable for an additional 60 days, during which it is subject to congressional review and may be converted into law.
The measure represents a significant change to the tax regime applicable to the oil and gas sector, with potential economic, contractual, and regulatory impacts on agents involved in the production, commercialization, and export of these products.
Our team is closely monitoring developments on this matter and remains available to provide:
- a detailed analysis of the impact of Provisional Measure No. 1,340/2026 on specific operations;
- an assessment of tax and contractual risks; and
- support in any administrative or judicial discussions to challenge the raise of the tax rate.
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