Oil and gas industry not to have government's tax benefits

Mines and Energy Minister Eduardo Braga said Monday (Jan. 25) that the measures being considered by the government to stimulate the oil and gas industries do not include tax exemptions, nor subsidies.

"We are not talking about tax exemptions, we are talking about incentives in general. We are analyzing regulatory issues," reported the minister. According to Braga, there is no forecast for subsidies either.

Monday morning, Braga met with President Dilma Rousseff and members of the Brazilian Institute of Oil, Gas and Biofuels (IBP). According to the minister, during the meeting they analyzed the measures already adopted last week to stimulate the sector. "We are still discussing other proposals that move towards encouraging and attracting more investment at this moment of low oil prices," he added.

Last week, the government issued a decree extending the concept of local content for the Brazilian oil industry suppliers. The National Energy Policy Council has adopted another measure ordering the National Petroleum Agency to operate the pricing system to determine the lowest oil price taking into consideration the amount to be paid with royalties of the special participation.

Eduardo Braga also declared that he may talk to Finance Minister Nelson Barbosa in the next few days and another meeting with the IBP members is expected to establish the details of the measures.

Translated by Amarílis Anchieta