Rio de Janeiro state imposes new taxes on oil and gas production

Rio de Janeiro state imposes new taxes on oil and gas production

Rio de Janeiro state is introducing new taxes on oil and gas production, according to Reuters.

The taxes will impact, among others, offshore producers working the resource-rich fields off of Rio.

They will comprise a flat tax and a goods and services tax on each barrel of oil (or its gas equivalent), and they will come into effect on Thursday (December 31).

State politicians took the leap to introduce the taxes in a bid to offset reduced revenues caused by various factors including: falling oil prices; a general economic slump; and the negative effects of the Petrobras “bribes for inflated contracts” corruption scandal.

But oil industry groups and some economists question the effectiveness of the taxes, saying they could hinder investment in the energy sector.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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