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.