A federal court in Brasília on Thursday (27) provisionally suspended the collection of a 12% export tax on crude oil and bituminous minerals. The injunction was granted by Judge Diego Câmara of the 17th Federal Court of the Federal District, at the request of the Brazilian Association of Oil and Gas Exploration and Production Companies (ABEP), and orders the Federal Revenue Service to stop demanding the tax from the companies the association represents, according to G1.
Timeline of the tax
The levy was created by Provisional Measure 1,340/2026, a type of presidential decree in Brazil that takes effect immediately but requires congressional approval, and has been in force since March. The measure expired because Congress did not vote on it within the constitutional deadline. That same day, July 9, the government's foreign trade executive committee (Gecex) published Resolution No. 938/2026, reinstating the rate for 60 days, valid until September 9. According to the Federal Revenue Service, the tax has already raised R$ 7.9 billion. InfoMoney puts the figure at R$ 7.982 billion collected since March, based on data through July.
In his ruling, the judge found that the resolution renewed a levy that had been tacitly rejected by Congress, which in his view would amount to an attempt to bypass the legislative process:
"There being no doubt, in this case, that reissuing a Provisional Measure restoring the Export Tax rate tacitly rejected by Congress this year was forbidden, I consider it all the more improper to renew such an increase through an infralegal normative act, under penalty of defrauding due legislative process," Judge Diego Câmara wrote.
The judge also raised questions about the economic purpose of the levy and stated that the tax may not be suitable for achieving the government's stated goals.
What each side argues
Oil companies had been trying to overturn the charge. The industry argues that the rate reduces the attractiveness of investments and hurts Brazil's position in foreign markets, according to InfoMoney.
The government defends keeping the tax. Asked about it earlier, Minister Márcio Elias said that, given the Middle East crisis and its effects on prices and logistics, the measure "is not only justified, it is necessary." In a letter to the Ministry of Development, Industry and Trade, the Finance Ministry's executive secretary, Rogério Ceron, argued that the international scenario remains volatile, with restrictions on Gulf production and exports and risks to international energy transport routes, especially the Strait of Hormuz. The ministry maintains that, while the tax was in force, domestic refineries processed more oil and imports of crude and derivatives fell, and it supports keeping the 12% rate for another 60 days. The levy was introduced to counter the effects of the Middle East war on the domestic market and to cover the cost of gasoline and diesel subsidies. On Tuesday (25), the Finance Ministry extended the R$ 0.44 per liter gasoline subsidy until September 9.
The injunction is provisional, and the merits of the case have yet to be judged. The dispute now moves on two tracks: Gecex meets this Thursday (27) to decide whether to extend the tax, which remains valid until September 9, and the federal government can appeal the 17th Federal Court's decision. No date has been set for the final ruling.